CAIRO: Banque Misr will provide the Egyptian Electricity Holding Company (EEHC) a $525-million loan for enhancing and supporting the electricity services, Youm7 reported Thursday.
The loan will be granted from Misr Banque in cooperation with a number of the Egyptian and Arab banks, including National Bank of Egypt, Commercial International Bank and Arab African International Bank.
In press statement during the financial inclusion forum Thursday, Cthat bank chairman Mohamed el-Etreby announced that the bank signed a Memorandum of Understanding with the Arab Banking Corporation in Bahrain for a $300-million loan for the Banque over three years, to be used in funding projects.
In August, EEHC requested $525 million from banks to resume the work in Asyut and Damietta power plants, Amwal al-Ghad reported.
“The EEHC targets a loan from a banking consortium that would pay off dues of the contractors working on the two plants; Orascom Construction (OC) and General Electric,” a senior banking source told Amwal Al Ghad Aug. 25.
A 1000-megawatt (MW) combined cycle power plant was inaugurated in Asyut in June, with an investment cost of around $746 million, Youm7 reported.
The power plant is established on a total area of 85 acres and consisting of eight generating units, each generates 125 MW.
The power plant is established jointly by the Egyptian Orascom and the American General Electric companies.
Minister of Electricity Mohamed Shaker said the Asyut power plant is part of Egypt’s 2015 plan to overcome electricity shortages, which includes adding 3632 MW to the country’s power grid, with an investment cost of around $2.65 billion.