HomeWorld RegionsAfricaEIB to lend $600m for Egypt gas-fired power project

EIB to lend $600m for Egypt gas-fired power project

As part of Egypt‘s five-year Power Boost programme, the government this week signed a $600m loan agreement with the European Investment Bank (EIB) to finance the construction of a gas-fired power plant in the country. à‚ 

The 1.8 GW Damanhour combined-cycle plant will be located at an existing power plant site in Egypt’s Nile Delta region, and will be constructed by the state-owned West Delta Electricity Production Company, a subsidiary of the Ministry of Electricity and Energy’s Egyptian Electric Holding Company.

The $1.3bn project has also received funding from the European Bank for Reconstruction and Development ($200m) and the Arab Fund for Economic and Social Development ($200m).

According to the EIB, the proposed design for the plant includes 2×900 MW combined-cycle gas turbines, two multi-pressure heat recovery steam generators (HRSGs) without supplementary firing, and a 300 MW reheat steam turbine generator.

Two new transmission lines are also planned to connect the plant to the national grid.

EIB vice-president Romàƒ¡n Escolano said: “The Damanhour power plant is a critical investment and a strategic choice for the country as it will contribute to increasing the electricity supply at competitive cost using modern technology with a low environmental impact.”