Kuwait funds construction of mega power project in Egypt

Kuwait funds construction of mega power project in Egypt

The Kuwait Fund Arab Economic Development (KFAED) will fund a mega  power project in Egypt with USD$ 100m.

According to Amwal Al Ghad the power plant which is located in the Egypt’s South Helwan is expected to be operational in the next five years.

The loan will help finance Egypt’s South Helwan Power Project worth $1.7 billion (around 14 billion Egyptian pounds) and the loan will garner 2.5% interest per year with a five-year grace period to be paid over 20 years.

The project is also being co-financed by the World Bank with a loan of about $503.8 million, the Islamic Development Bank with $450 million, the Arab Fund with 55 million Kuwaiti dinars, the KFAED with 30 million Kuwaiti dinars, and the African Development Bank with $90 million.

It will add around 1,950 megawatts to Egypt’s national grid was signed by Egyptian Minister of International Cooperation Sahar Nasr and Abdulwahab Ahmed Al-Bader, Director General of Kuwait Fund, in the presence of Egyptian Minister of Electricity Mohamed Shaker.

This takes the volume of cooperation portfolio between Egypt and the Kuwait Fund to 720 million Kuwaiti dinars ($2.6 billion), and comprises of 41 projects in several economic and social sectors.

This is among the many power projects that are under construction in Egypt as the country gears itself towards producing enough power for the rising Egyptian population.

In the recent years the government of Egypt has signed numerous power deals with sole companies such as Samsung and countries such as Russia to develop the power sector in Egypt.

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