The European Investment Bank (EIB) has lent Egypt € 205 million to enable the North African country carry out a new energy project which consists of converting an open-cycle power plant to combined-cycle gas technology.
The project will help improve the efficiency of power generation to boost the plant’s capacity to 1500 MW, which represents a 50 pc increase in electricity output. Such increase will enable Egyptian authorities meet the growing electricity demand at a competitive cost and with a low environmental impact.
The project will be co-financed by the European Bank for Reconstruction and Development (EBRD) and the Saudi Fund for Development.
Once completed, the plant conversion will contribute to the expansion of basic energy infrastructure needed for the economic development of Egypt.
The EIB/EBRD backing of this projet is part of the Euro-Mediterranean Partnership policy and seeks to energy efficiency and protect the environment.
According to the EIB vice-president Philippe de Fontaine Vive, the bank’s goal is “to support the new Egypt’s social and economic transition by financing projects, encouraging growth and employment”.
“This is why we have decided to develop and modernize infrastructures in the sector of energy”, he added, noting that through this project, the bank seeks to promote the productivity and competitiveness of the Egyptian economy, create jobs and contribute to the improvement of the daily life of the Egyptian people.
Over the last two years, EIB has granted Egypt more than € 1 billion loans for projects in key economic and social sectors. Last December, EIB signed three loans totaling €187 million: a € 57 million loan to support of water and wastewater program in Upper Egypt, a € 80 million to improve SMEs’ access to credit and a €50 million loan to ensure safety and efficiency within Egyptian airspace, in line with the International Civil Aviation Organisation (ICAO) and EU standards