Egypt secures EBRD loan for power plant

17 Nov 15

The European Bank for Reconstruction and Development has approved a $200m loan for Egypt towards a $1.3bn project to overcome the country’s energy shortfall.

Egypt is in the midst of an energy crisis as rising population, intense heat and fears of terrorist attacks on infrastructure have put capacity 20% behind demand, leading to regular blackouts in parts of the country.

Sahar Nasr, Egypt’s minister of international cooperation, said: “The project will support Egypt in facing the increasing power demand from the industrial, domestic and agriculture sectors. In addition it will reduce the burden on the main electricity grid.”

The project, which will see the construction of a new 1.8 giga watt combined cycle gas-fired power plant in Damanhour, north-west of Cairo, is also supported by the European Investment Bank, the Arab Fund for Economic & Social Development and the African Development Bank.

The EBRD’s funds will be loaned to the West Delta Electricity Production Company who will construct the plant.

Investment in the new plant will increase efficiency and available generating capacity, alleviating energy shortages. Plans claim that the Damanhour plant will be the most energy and water-efficient plant in the country, reducing the energy generation sector’s carbon footprint by 1.5 million TCO₂ every year.

Hildegard Gracek, EBRD managing director for the southern and eastern Mediterranean region, said: “Investing in electric power is crucial when it comes to our work in Egypt. Through this investment we’re offering full support to diversify the sources of energy generation, energy efficiency and clean energy.

“Overcoming the chronic supply shortages is also essential for sustainable economic growth and the living conditions of the population.”

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