KSA Fund loans $100mn for Egypt Power Station
The power station expansion will include the building a new unit for electricity generation using steam inside the West Cairo Power Station
A high-level government delegation will leave to Saudi Arabia on 7 December after the Saudi Fund for Development (SFD) approved to grant Egypt a loan of $100m to carry out the expansion of West Cairo Power Station.
A source at the Ministry of Electricity said the delegation includes representatives from the Ministries of International Cooperation, and of Electricity to complete negotiations in Riyadh, Saudi Arabia, reported Egypt’s Daily News.
The source said the project aims to expand the West Cairo Power Station to meet the growing demand for energy by building a new unit for electricity generation using steam inside the West Cairo Power Station in the village of Saqeel, Giza. The new unit will use natural gas as a primary and heavy fuel oil (diesel) as a reserve fuel.
The project includes steam electricity production units with capacity of 650 MW with all its extensions and services necessary for its operation and linked to the unified grid. The project will also provide advisory services and supervising construction process, according to the source.
The project is expected be completed in the fourth quarter (Q4) of 2019 with a total cost of EGP 5.468bn, including a loan from Kuwait Fund for Arab Economic Development amounting to KWD 30m.
President Abdel Fattah Al-Sisi issued decree No. 93/2015 on the approval on loan agreement for the expansion of the West Cairo Power Station with capacity of 650MW between Egypt and Kuwait Fund for Arab Economic Development.
The Egyptian government is seeking to provide resources from abroad to support the state budget and provide hard currency to ease the pressure on the pound. Therefore, the government is negotiating loans of about $4.5bn from the World Bank and the African Development Bank (ADB). It is also offering lands for Egyptians abroad in hard currency, hoping to bring about $2.5bn.