CAIRO: President Adly Mansour issued a presidential decree Thursday to approve a loan agreement between Egypt’s government and the Arab Fund of Economic and Social Development, to finance a project linking Egypt and Saudi Arabia’s electricity grids, Youm7 reported.
The agreement had been signed on March 24 and will commence on the condition of approval by the Cabinet, Youm7 reported.
Presidency spokesperson Ehab Badawy said the project will allow the exchange of electricity capacities, except during peak hours, and sharing of electricity reserves generated during power cuts and emergencies.
The $162 million loan is a soft loan, he added, Egypt will receive half of its value as a grant and pay it off over 21 years after a four-year grace period, Youm7 reported.
Mansour also issued a presidential decree Thursday to approve a loan agreement between Egypt’s government and the Kuwait Fund for Arab Economic Development to contribute to financing the El Waledia Power Station in Asyut, signed in March 31 on the condition of approval by the Cabinet, El-Watan reported.
Badawy said the project will increase electricity capacity by 650 megawatts. That $100 million loan is also a soft loan. Egypt will receive about 56 percent of its value as a grant and will pay it off over 18 years after a six-year grace period.
In a phone interview with Al-Masry Al-Youm, Ismail said the current electricity crisis, and frequent power cuts, will end by September with the arrival of increased amounts of Gulf petroleum aid.
He said the petroleum ministry will work to secure the oil supply to improve services, achieve sustainable development and create jobs.
Additional reporting by Mohamed al-Galy.