Arab fund offers $ 80 million soft loan to Egypt's electric sector

The Ministry of Planning and International Cooperation signed an agreement with the Arab Fund for Economic and Social Development to finance an electric power plant north of Cairo.

The plant is set to bolster electric supply to meet the growing demand on electricity in Greater Cairo as of 2005.

The agreement was signed by Minister of Planning and International Cooperation Ahmad al-Darsh and the Fund Director-General Abdellatif Youssef al-Hamd.

The Fund offers a $ 80 million soft loan at an annual interest rate of 3 percent. It will be repaid over 20 years after 6-year of grace period.

The Arab Fund for Economic and Social Development has offered Egypt $ 1600 million in loans, 48 percent of which was allocated to the electricity sector.

The total cost of the power station is estimated at $ 322 million. The Islamic Bank will offer 41.5 million, the European Investment Bank will offer $ 80 million and the Egyptian Electricity Company will patch up about LE 433 to contribute to the finance of the project.