EBRS is mulling providing sovereign loan for a 1.8 GW power plant in Egypt

The EBRD is considering providing a sovereign loan of up to US$200 million to the Arab Republic of Egypt to fund the construction of a 1.8 GW power plant near Damanhour city.The sovereign loan will be on-lent to the state-owned Egyptian Electricity Holding Company (EEHC) and its subsidiary West Delta Electricity Production Company (WDEPC).The total project investment is estimated at US$1.32 billion. It will be co-financed by loans from:

• the European Investment Bank, US$600 million,
• the Arab Fund for Economic & Social Development, US$200 million and
• the African Development Bank, US$80 million.

The balance of the project cost, US$240 million will be financed by EEHC's own resources.

The project will add 1.8 GWe Combined Cycle Gas Turbine (CCGT) power plant to an existing power plant near Damanhour city. It also involves the decommission of three 65 MWe/ea light fuel oil fired units which were commissioned in 1968/69.

The construction of the new plant will be associated with additional infrastructure, such as a new 14.5 km high voltage transmission line and an additional 4 km gas supply pipeline.