With efforts to boost Egypt’s electricity generation output, a consortium including nine Egyptian banks, are investing an estimated $1.5 billion in a new generation project.
Thomson Reuters cited Amwal Al Ghad news agency, that the consortium have already submitted the terms and conditions for a syndicated loan to develop a coal-fired power plant in the Hamrawein area on the Red Sea coast.
Electricity generation output
According to Amwal Al Ghad, a banking sourcesaid the funds will be in favour of the state-run Egyptian Electricity Holding Company (EEHC).
The consortium includes the Commercial International Bank (CIB), QNB Al-Ahli, the Arab African International Bank (AAIB), AlexBank, Ahli United Bank, Export Development Bank of Egypt (EDBE), Egyptian Gulf Bank, Societe Arab Internationale de Banque (SAIB), and Emirates NBD Egypt, the source said.
The source further added that the banks are expected to receive loan guarantees from the Egyptian Ministry of Finance against risks of going into payment default.
The plant, which is expected to be completed within 84 months, will be developed in the Hamarawein port, which is currently used for phosphate exports, about 150 kilometers south of Gouna, Thomson Reuters reported.
According to media, the plant is set to add 6,000MW to the country’s electricity grid at an estimated cost of $10 billion.
In other news, Egypt’s ministry of power has earmarked $386 million toward the upgrading of the north African country’s electricity grid come the next fiscal year (2017/2018). Daily News Egypt reported that the funds have been allocated for the maintenance of cables and equipment, and upgrades of the electricity transmission and distribution companies across the country.
According to El-Husseiny El-Far, a member of the electricity companies’ distribution affairs department at the Ministry of Electricity, the strategy will not only include network upgrades but also establish automatic control centres, and implement the smart meter system.