Press Release

US$23.43 million loan extended by OPEC Fund to expand power plant in Egypt

17/2006 March 21, Vienna, Austria
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The OPEC Fund for International Development today signed a US$23.43 million loan agreement with the Arab Republic of Egypt to help finance expansion of the Cairo West Power Plant. The plant is being upgraded in a bid to enable the country to meet burgeoning electricity demand.

Egypt has one of the most comprehensive electricity networks in the Middle East, with services reaching almost the entire population. However, electricity requirements are steadily rising, and forecasts indicate that peak loads will increase significantly over the next decade, necessitating the expansion of the country’s power-generating capacity. The Cairo West Power Plant, which is situated on the western bank of the River Nile some 12.5 km from the center of Cairo, has been chosen as it possesses a number of advantages: it has close proximity to water and fuel sources as well as major consumption centers.

The project aims to have the new power plant with an additional 650 MW generating capacity fully commissioned by 2009. Works will include the design, procurement and installation of two steam turbine generator units, together with their ancillary mechanical and civil components and auxiliary electrical parts. In addition, a water treatment system and wastewater treatment facilities will be built and all mechanical and electrical works completed.

This project represents the Fund's third 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 a number of technical assistance grants.

Today’s agreement was signed in Vienna by HE Mr. Ramzy E. Ramzy, Ambassador of the Arab Republic of Egypt to Austria, and by HE Mr. Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC Fund.