USD 240 Million for Power Station in North Giza

The Minister of Planning Fayza Abul Naga signed loan agreement provided by the World Bank amounting to USD 240 million to contribute in financing phase III of the power station in North Giza. The agreement was signed by the bank representative in Cairo, in attendance of board chairman of the holding company for Egypt’s electricity, and board chairman of the Egyptian Co. for Natural Gases.

The project comes as phase III of the power station in North Giza of total amount USD 1,590, and WB has contributed in financing phases I & II with loan USD 600 million signed in 2010, in addition to financing package from the EU Investment Bank by USD 340 million, OPEC Fund for International Development by USD 30 million, and local component of USD 380 million.

The project aims at improving security and efficiency of the electricity extensions for the unified electrical grid through adding new generation skills for the grid. The Holding CO. for Electricity and the Egyptian Co. for Natural Gases are implementing the project, and pays the financial burdens follow the loan. This loan considers as an easy one that will be paid on 28,5 years including 7 grace period and 1.21% interest rate.

From her side the Minister of Planning stated that the loan comes within the developing cooperation portfolio between Egypt and WB including 19 projects financed through loans amounting to USD 3,972 billion, in addition to 13 current grants amounting to USD 36,7 million. The cooperation portfolio includes all sectors as electricity, renewable energy, agriculture, health, education, environment, housing, irrigation, transport and infrastructure.

The bank will also finance 3 other projects in the electricity and energy sector with amount USD 1,045 billion and negotiations are carried with the bank on obtaining investment loan of USD 200 million to contribute in financing the urgent highly employees project which aims at creating jobs on the short run through enforcement of rural and urban societal services projects.