CAIRO: Saudi Arabia has approved a loan of $100 million to Egypt to expand the West Cairo power plant to produce 650 megawatts, Youm7 reported Wednesday.
The Saudi Development Fund declared the approval recently to support Egypt’s efforts to improve economically, Riyadh ambassador to Cairo Ahmed Kattan said at the Arab League Wednesday.
The loan will contribute to the funding of the project as Egypt inaugurated several power plants to counter a pressing energy crisis. Most recently, Egypt signed a Memorandum of Understanding (MoU) with London-based Actis LLP to establish a wind-powered electricity plant in Suez Gulf at a cost of $350 million.
The two states will inaugurate an electricity linkage project in 2018. The Egyptian power grid will be connected to that of Saudi on 500 kilovolts. The project will enable Egypt and Saudi Arabia to share electric power of up to 3,000 megawatts during the off-peak hours of the exporting country.
Saudi Arabia has remarkably supported Egypt on a political and economic level since the 2013 ouster of President Mohamed Morsi.