The Egyptian Electricity Holding Company signed a loan worth $650m to develop power stations in Assiut and West Damietta on Wednesday, with a European banking alliance headed by BNP Paribas.
Minister of Investment Dalia Khorshid said during the loan-signing celebration that the project comes within the second phase of the electricity emergency plan, which aims to convert two power plants to work with a combined cycle in order to increase its generating capacity from 1,500 to 2,250 MW.
The project is financed by a European banking alliance led by BNP Paribas through a long-term loan guaranteed by the Egyptian Ministry of Finance and a comprehensive insurance offered by the Italian agency for exports (SACE).
The American General Electric Company and the Egyptian Orascom Construction company will implement the project with the turnkey EPC+Finance system.
Khorshid said that the project establishes an investment structure that is meant to be attractive for investment in the electricity sector and will contribute to providing electricity needs in the Egyptian market.
The implementation of the plan started over a year ago in order to provide Egypt with the electricity required to create an attractive investment environment.
The Ministry of Electricity succeeded in implementing the first phase of the plan for electricity in cooperation with major international companies, which helped alleviate the power grid and reduce power outages.