EEHC receives funding for Nubariya power plant-phase two

The European Investment Bank (EIB), the finance institution for the European Union, announced yesterday a 150-million-euro long-term loan to the Egyptian Electricity Holding Company (EEHC) for the construction of the second module for the Nubariya power plant.

Located on the Nile Delta, 120 kilometers northwest of Cairo near the junction of the Nubariya and el-Nasseri canals, the plant will have an annual output of 4550 GWh/a.

Prime Minister Atef Ebeid witnessed the signing of the agreement, which was signed on behalf of Egypt by head of the Electricity Authority, Mohamed Awad, and on behalf of the EIB by Vice-President Philippe de Fontaine Vive.

The Ministers of Electricity and Finance, and the Minister of State for Foreign Affairs and International Cooperation attended the signing ceremony.

The loan follows on from an initial 150 million euros, granted by the EIB in September 2002, for phase one of this gas-fired, combined-cycle plant which is scheduled to enter into commercial operation in 2007.

At the signing of this second loan, Mr Vive said: "This project will serve to meet growing demand for electricity by both private and business users in the Cairo and Alexandria regions (up by 7.7 per cent in 2002 alone).

"It will facilitate the exploitation of an abundant domestic energy resource (natural gas), in line with Egypt's economic development objectives.

"The sustainability of such development will be enhanced by the fact that the project will be implemented in accordance with the EU's most stringent current environmental standards.

"I am also pleased to stress that this operation chimes fully with the goals of the Bank's new Facility for Euro-Mediterranean Investment and Partnership (FEMIP), one of whose priorities is to create an environment favourable for growth of private enterprises." However, incorporated in 2000 as a private sector company owned by the state.