CAIRO: The Ministry of Electricity Thursday signed a deal with the Islamic Development Bank (IDB) for a 2.75 billion EGP ($385 million) loan to finance a 1,950 megawatt power plant project in Helwan, according to a Thursday statement.
The loan will finance the South Helwan Power Plant in accordance with a plan started in 2012 and set to run to 2017 aimed at bolstering the unified electricity network to overcome soaring overloads.
The ministry did not mention any details about the date scheduled for the repayment of the loan or its interest rate.
“The investment cost of the project amounts to 12.5 billion EGP,” Minister of Electricity Mohamed Shaker said in his statement. He added that the Islamic Development Bank, the European Union for Reconstruction and Development, the Kuwait Fund for Arab Economic Development and the Arab Fund for Social and Economic Development will participate in financing the project.
Rolling power cuts in the summer have become ubiquitous since the 2011 January 25 Revolution, caused by fuel shortages in power plants.
Addressing this energy crisis was a key challenge in which many believe former President Mohamed Morsi failed. The shortage helped inflame mass protests against his regime on June 30 before the military deposed him on July 3.