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Solar panels in Egypt

The European Bank for Reconstruction and Development and the Arab Fund for Economic and Social Development have already helped finance the $1.3bn project, which will cater for increasing demand and assist Egypt in lifting itself out of an energy crisis.

Signing the financing agreements in Cairo yesterday, EIB vice president Román Escolano said: “The Damanhour Power Plant is a critical investment and a strategic choice for the country as it will contribute to increasing the electricity supply at competitive cost using modern technology with a low environmental impact.”

Due to a rising population, intense heat and fears of terrorist attacks on infrastructure, Egypt’s energy capacity is currently 20% behind demand and there are regular blackouts.

The 1.8 gigawatt plant, which will be constructed by West Delta Electricity Production Company, will be located north-west of Cairo and increase efficiency and capacity while alleviating shortages.

It is claimed 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 annually.

The EBRD separately announced a €100m loan for Egypt, which will be used to procure 13 new trains and increase the capacity of Cairo’s Metro by approximately 23% in the hopes of alleviating congestion and benefiting thousands of commuters in the city.