Press Release

US$18 MILLION LOAN EXTENDED BY OPEC FUND TO REFURBISH POWER PLANT IN EGYPT

09/2005 January 12, 2005, Vienna, Austria

The OPEC Fund for International Development today signed a US$18 million loan agreement with the Arab Republic of Egypt to help finance re-commissioning of the Kuriemat Power Plant. The plant is being rehabilitated in a bid to enable the country meet burgeoning electricity demand.

Egypt has one of the best electricity networks in the developing world, with services reaching more than 99% of the population. However, electricity requirements are steadily rising, and forecasts indicate that peak loads will increase significantly over the next few years, necessitating the expansion of the country's power-generating capacity. The Kuriemat Power Plant, which is situated on the eastern bank of the River Nile 60 km south of Cairo, has been chosen for re-commissioning as it possesses a number of advantages: it has close proximity to fuel sources; a plentiful water supply for cooling; and the existing switchyard can be used for connecting the renovated facilities to the national electricity network.

The project aims to have the new combined cycle power plant with a 750 MW generation capacity fully commissioned by 2006/2007. The following works will be carried out: procurement/installation of two gas turbine generator units; 10 power transformers of varying voltage; one steam turbine generator unit with related instrumentation and control systems and two heat recovery steam generators. In addition, a water treatment system and wastewater treatment plant will be built, and all related mechanical and electrical works completed. The Fund's loan will specifically co-finance the heat recovery steam generator package.

This project represents the Fund's second intervention in support of Egypt's energy sector. Six other loans provided balance of payments support and helped finance five projects in the agriculture, health, national development banks and education sectors. Additionally, two private sector loans have been approved. Egypt has also benefited from two research grants and four technical assistance grants in the agriculture and education sectors.

Today's agreement was signed in Vienna by Mr. Hassan El-Laithy, Chargé d'Affaires of the Arab Republic of Egypt to Austria, and by H.E. Mr. Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC Fund.