EBRD announces financing for 1.8 GW power project in Egypt
The European Bank for Reconstruction and Development (EBRD) is providing a US$ 200 million loan to the Egyptian Electricity Holding Company (EEHC) to be on-lent to West Delta Electricity Production Company (WDEPC) for the construction of a new 1.8 GW combined cycle gas-fired power plant in Damanhour, north west of Cairo, Egypt.
This loan will contribute to funding the US$ 1.3 billion total project cost, which is also being supported by the European Investment Bank, the Arab Fund for Economic & Social Development and the African Development Bank.
Investment in the new power plant will alleviate Egypt's acute energy shortages by increasing both efficiency and available generating capacity. The new Damanhour plant will use the most advanced modern technology and, when built, will be the most energy and water-efficient plant in Egypt, reducing the energy generation sector's carbon footprint by 1.5 million TCO2e each year.
Hildegard Gacek, 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.”
Nandita Parshad, EBRD Director for Power and Energy Utilities, said:
"Our partnership with the Egyptian Electricity Holding Company and the Ministry of Electricity and Renewable Energy is central to our work in the sector. We are delighted to partner with them to support the modernisation of their generating fleet and also to deepen our cooperation as they reshape the sector to meet Egypt's energy needs."
Sahar Nasr, Egypt Minister of International Cooperation, said:
The project will support Egypt to face the increasing power demand from the industrial, domestic and agriculture sectors. In addition it will reduce the burden on the main electricity grid.”
The EBRD has invested in excess of €1 billion in Egypt through 27 projects (including regional) since the start of its activities in the country at the end of 2012. The Bank’s investments include the financial sector, agribusiness, manufacturing and services as well as infrastructure projects such as power, municipal water and wastewater and contributions to the upgrade of transport services.
