The European Investment Bank has today signed a loan agreement for €205m ($279m) to finance a poEuropean Investment Bankwer plant conversion in Egypt.

The El Shabab facility will be converted from open-cycle to combined-cycle gas technology which will result a doubling of capacity to 1500 MW.

The conversion is being carried out to meet Egypt’s growing electricity demand and contribute to the expansion of basic energy infrastructure.

The EIB’s vice-president Philippe de Fontaine Vive said the bank’s aim was to “support the new Egypt’s social and economic transition by financing projects encouraging growth and employment… this is why we have decided to develop and modernize infrastructures in the sector of energy”.

Through this project, we aim to promote the productivity and competitiveness of the Egyptian economy and to create jobs.”