Arab, European bodies to finance new power station

"The Arab Economic and Social Development Fund (AESDF) agreed to loan Egypt $ 100 million to build an additional power plant in Talkha," said Egypt's Minister of Electricity and Energy.

In statements on Friday, Hassan Yunis said that the Kuwaiti Development Fund has also agreed to loan Egypt an equal sum while the European Investment Bank (EIB) will offer $ 25 million to build the 750-megawat plant.

"The new plant will be linked with the state-wide electric network by the end of 2007 in order to cater for growing demand of the new projects and the new communities which are increasing by 8 % annually," said Yunis.

"Some 40 % of the equipment and machinery of Talkha electricity project will be manufactured locally, while Egyptian contractors specialized in the field will undertake the construction works," added Yunis.