Egypt is set to secure a $100m loan from the Kuwait Fund for Arab Economic Development to develop a 1300MW steam-fuelled power plant.
The plant comprising two steam units of 650MW each will be built in Ain Sokhna, east of Cairo.
Electricity and Energy Minister Hassan Younes said the plant was one of the projects that fell under a scheme to add 9,200MW to meet growing demand for energy in the country, reports Arab news agency MENA.
The EGP9.5bn ($1.7bn) project will be funded by the African Development Bank, the World Bank and the Arab Fund for Economic and Social Development and the state-owned West Delta Electricity company.
The first unit is expected to become operational by July 2013, with the second following in the October.