EIB contributes $340mn to Egypt's power sector
Bank to finance the el-Shabab power station with a 19-year loan
Egypt's Planning and International Cooperation Minister Ashraf el Arabi and the European Investment Bank (EIB) vice president Philippe de Fontaine Vive have signed a project-finance agreement with the Central Bank of Egypt (CBE) and the Egyptian Electricity Holding Company.
Under the agreement, the EIB will finance el-Shabab electricity station with a loan which will be paid over 19 years with a five-year grace period.
The power plant will be converted to work with a combined-cycle system to increase its energy production by 50 per cent without using additional fuel, bringing the plant’s output to 1,500MW.
“Our aim is to support the new Egypt’s social and economic transition by financing projects encouraging growth and employment,” vice president of EIB Philippe Fontaine said in the statement.
Investments in the project total $900mn. In addition to EIB, the European Bank for Reconstruction and Development (EBRD), the Saudi Fund for Development (SFD), the Islamic Development Bank (IDB) and East Delta Electricity Production Company are all already contributing in financing the project.