Egypt secures $100mn from KSA for power projects
Financing will be invested in two plants to help boost capacity.
Egypt signed $100mn worth of financing agreements with Saudi Arabia on Saturday aimed at upgrading its power grid as it seeks to end its worst energy crisis in decades.
Two loan agreements signed on Saturday worth a total of about $100mn will be invested in two power stations that are expected to boost the capacity of the national grid.
A further $250mn in assistance will come in the form of petroleum products, Reuters reports.
Egypt introduced deep cuts to energy subsidies in July, which have resulted in price rises of more than 70%, as it seeks to curb public spending and fuel waste.
Power cuts have become common in Egypt as the cash-strapped government struggles to supply enough gas to its power stations let alone upgrade a grid suffering from decades of neglect.
The energy crunch has become a political hot potato in the Arab world’s most populous country, which has turned from a gas exporter into a net importer in recent years as it diverts gas once destined for export to meet burgeoning domestic demand.