Egypt Secures $1bn Funding For Gas-Fired power, $500mn For Energy Reforms

Egyptian state generator EEHC has secured the financing required to proceed with the $1.3bn development of a 1.8GW combined cycle gas turbine (CCGT) plant 5km northwest of Damanhour in Egypt’s western Nile Delta region. The Cairo government has also secured broader financial support for energy reforms.

The European Investment Bank (EIB) says it will contribute $600mn of financing for the Damanhour project, in addition to $200mn each from the European Bank for Reconstruction and Development (EBRD) and the Arab Fund for Economic and Social Development (AFESD).

The $300mn funding balance will come from EEHC’s West Delta Electricity subsidiary. EEHC aims to tender for the Damanhour CCGT construction contract in the first quarter of 2016, with a view to starting up the first turbine in 2018. (CONTINUED - 418 WORDS)