CAIRO: Interim President Adly Mansour issued on Tuesday a presidential decree to approve a syndicated loan between Egypt and the Arab Fund for Economic and Social Development to finance a power station in the Asyut governorate in Upper Egypt, Youm7 reported.
The $200 million syndicated loan will fund a 650-megawatt power station in the El-Waleediya region to help address the electricity shortage and frequent power cuts, said Cabinet Spokesperson Hany Salah.
Of the loan, 53 percent will be paid back immediately and the remaining 47 percent will be repaid in installments over 19 years after a six-year grace period.
At the same time, the Ministry of Petroleum signed an agreement with the Ministry of Electricity to increase the amount of diesel oil for power plants to 26,000 tons daily by Wednesday to overcome frequent power outages, Youm7 reported.
The two sides also agreed to increase diesel oil quantities for power plants to 28,000 tons by June, and the amount of gas to 78 to 79 million cubic feet daily for power plants, Youm7 reported.
The government aims to address the current shortage of electricity and frequent power cuts with new power plants and increased oil quantities for the plants.
Khaled Abdel Badee, head of the Holding Company for Egyptian Natural Gas, said additional quantities of diesel oil and gas, along with the Ministry of Electricity’s energy rationing initiative will help overcome the current crisis, Youm7 reported.
Hafez Salmawy, head of Egyptian Electric Utility and Consumer Protection Regulatory Agency, said the frequent power cuts are due in part to a lack of fuel for power plants, The Cairo Post previously reported.
“If electricity stations get the enough energy, the electricity deficit will be minimal,” he said.