EIB offers 75million euro to set up a new power station

The European Investment Bank (EIB) has agreed to extend 75 million euros as a soft loan to Egypt for financing the establishment of a power station north of Cairo.

The new station will generate 750,000 kilowatts and will be linked to the unified grid in 2004.

Minister of Electricity and Energy Ali el-Saedi said a techno-economic delegation from the EIB will arrive in Cairo on April 21 to finalize procedures ahead of signing the loan agreement.

Saedi added that his ministry has received the approval of the Fund for Economic Development and the Islamic bank for Development to provide $131 million towards that end.

According to Saedi, the new power-generation station is one of several stations to be set up till 2005, with a view to providing 800,000 kilowatts on an annual basis to meet growing demand.

The private sector will be in charge of producing half the amount targeted, through power-generation stations to be set up in accordance with the Build, Operate and Transfer (B.O.T) system.