The European Investment Bank (EIB) will lend €205 million to finance Egypt’s El Shabab power plant project, it was announced today.
“Our aim is 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 topromote the productivity and competitiveness of the Egyptian economy and to create jobs. We aim to contribute to theimprovement of the daily life of the Egyptian people and to the building of a future for the younger generation,” said EIB Vice-President Philippe de Fontaine Vive at the signing ceremony.
Funding will go towards the conversion of an open-cycle power plant to combined-cycle gas technology which will significantly improve the generating efficiency of the power plant and in an increase in capacity to 1500MWe, or a 50% increase in electricity output, in order to meet the growing electricity demand at a competitive cost and with a low environmental impact.
The project will be co-financed by the European Bank for Reconstruction and Development (EBRD) and the Saudi Fund for Development.
Once fully developed, this complex will contribute to the expansion of basic energy infrastructure needed for the economic development of Egypt.
Over the last two years, the EIB’s Board of Directors has approved more than €1 billion loans for projects in Egypt and signed €637 million so far in key economic and social sectors.
The EIB said that its “aim in the past years has been to deploy its resources to provide an appropriate practical response to the expectations expressed by Egyptian people.”