The European Bank for Reconstruction and Development (EBRD) has agreed to provide $200m for a new gas-fired power plant in Egypt.
EBRD will provide a $200m loan to the Egyptian Electricity Holding (EEHC) that will be on-lent to West Delta Electricity Production (WDEPC) to develop a 1.8GW combined cycle gas-fired power plant at Damanhour in north-west of Cairo.
The estimated $1.3bn power project is also being supported by the European Investment Bank, the Arab Fund for Economic & Social Development and the African Development Bank.
The new power plant is expected to reduce energy shortages in the country by increasing efficiency and available generating capacity.
Once operational, the power facility is expected to reduce carbon footprint by 1.5 million TCO2e each year.
EBRD Mediterranean southern and eastern region managing director Hildegard Gacek said: "Through this investment we’re offering full support to diversify the sources of energy generation, energy efficiency and clean energy.
"Overcoming the chronic supply shortages is also essential for sustainable economic growth and the living conditions of the population."
Egypt international cooperation minister Sahar Nasr said: "The project will support Egypt to face the increasing power demand from the industrial, domestic and agriculture sectors. In addition it will reduce the burden on the main electricity grid."
EBRD has provided around €1bn in funds to 27 projects in the country, to date. The bank has invested in the infrastructure projects such as power, municipal water and wastewater, as well as in the financial sector, agribusiness, manufacturing and services.
Image: EBRD has granted $200m to develop a new gas-fired power plant in Egypt. Photo: courtesy of European Bank for Reconstruction and Development.