The Arab Republic of Egypt and the European Investment Bank (EIB) recently signed a loan agreement worth USD 600 million for financing the construction of a new 1.8 GW combined cycle gas-fired power plant in Damanhour, north west of Cairo, Egypt.
Román Escolano, EIB Vice-President, stated:
“Developing energy infrastructure is key to promoting growth and employment. The Damanhour Power Plant project 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”.
The Damanhour Combined Cycle Gas Turbine Power Plant project involves the construction of a Combined Cycle Power Plant with a total installed capacity of 1800 MW in the Nile Delta area of Egypt, some 5 km northwest of Damanhour town. It will strengthen electricity generation capacity to cater for increasing demand with modern and high efficiency units that will partly replace smaller and less efficient production capacity.
The project is part of a five-year plan to increase the capacity of the national electricity network of Egypt and is in line with EIB’s External Lending Mandate and the European Union’s Neighbourhood Policy. It will ensure electricity production with significantly lower CO² emissions compared to fossil-fuel based alternatives.
The USD 1.3 billion project is financed by the European Investment Bank (USD 600 million), European Bank for Reconstruction and Development (USD 200 million), Arab Fund for Economic and Social Development (USD 200 million) and West Delta Electricity Production Company’s own funds.
Román Escolano, EIB Vice-President, added:
“In Egypt, and in all the countries where we invest, we are working closely with the national and local authorities to ensure a more sustainable economic future by building stronger infrastructure, promoting business development and addressing persistent economic needs. The Bank is a long-standing partner of Egypt and we will continue providing financial support to the Egyptian Government to respond to the rising needs of the country.”