Today, the European Investment Bank (EIB) has signed a loan agreement for an amount of €205 million to finance El Shabab power plant project. The project consists of the conversion of an open-cycle power plant to combined-cycle gas technology. It will significantly improve the generating efficiency of the power plant, resulting in an increase in capacity to 1500 MWe representing 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 agreement was signed today by Mr. Nidal E. Assar, Deputy Governor of the Central Bank of Egypt, Mr. Gaber Dessouky Moustafa, Chairman of the Egyptian Electricity Holding Company (EEHC), Mr. Hamdy Ibrahim Azab, Chairman of the East Delta Electricity Production Company (EDEPC) and EIB Vice-President Mr. Philippe de Fontaine Vive. The signature was followed by a ceremony with Mr. Ashraf El –Araby, Minister of Planning and International Cooperation. 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. The project is in full conformity with the objectives of the Euro-Mediterranean Partnership policy pursuant to the joint Declaration by the Member States and Mediterranean Partner Countries in Barcelona and contributes to European policies in the areas of energy efficiency and climate change.
At the signing ceremony the EIB Vice-President Philippe de Fontaine Vive said: “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 to promote the productivity and competitiveness of the Egyptian economy and to create jobs. We aim to contribute to the improvement of the daily life of the Egyptian people and to the building of a future for the younger generation.”
EIB support for key economic and social sectors, €637million signed in the past two years.
As the leading development financier in the Mediterranean, the European Investment Bank (EIB) mobilizes its resources and expertise to target public and private sector projects that may assist in the process of economic and social recovery in the Region. Over the last two years, the EIB’s Board of Directors has approved more than €1 billion loans for projects in Egypt and signed EUR637m so far in key economic and social sectors.
EIB’s aim in the past years has been to deploy its resources to provide an appropriate practical response to the expectations expressed by Egyptian people. It encourages entrepreneurialism by supporting small businesses and promoting job creation.
Last December, EIB signed three loans amounting to a total of €187 million: a €57 million loan in support of the Improved Water and Wastewater Service Programme II (IWSP II) in Upper Egypt, a €80 million credit line to the National Bank of Egypt (NBE) to improve SMEs’ access to credit and a €50 million loan to ensure safety and efficiency within Egyptian airspace, in line with both the International Civil Aviation Organisation (ICAO) and EU standards.
