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Egypt signs $108 mln loan with Kuwait Fund for power station

Ahram Online , Wednesday 16 Mar 2016
Electricity Minister Mohamed Shaker
Views: 1865
Views: 1865

Egypt signed a loan agreement with the Kuwait Fund for Arab Economic Development worth $108 million on Tuesday to help finance the development of a power station in South Helwan, according to a statement by the international cooperation ministry.

The power station in south Cairo is under development at a total cost of $1.7 billion to generate 1.950 megawatts.

The loan would be paid over 20 years with a five year grace period and at a 2.5% interest rate, the statement read.

Several international financial institutions are contributing to the financing of the plant that is expected to begin operations in 2017 and be fully operational by mid-2018, according to a statement by the electricity ministry.

The World Bank is contributing to financing the project with $503 million and the Islamic Development Bank with $405 million. Other contributors include OPEC.

The state-owned Upper Egypt Electricity Production Company will also contribute to the financing of the power station with $256.2 million of its own resources, the statement said.

The project is part of a five-year-plan to reinforce the universal electricity grid, so as to overcome the heightened load on the grid, which has led to increasingly frequent power cuts.

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