EIB, Egypt to Ink Executive Agreement to Finance El Shabab Power Plant

Egyptian Minister of Electricity and Energy Ahmed Imam stated on Wednesday that it was agreed to finalize the executive agreement on the European Investment Bank (EIB)’s loan worth US$250 million, designated to fund El Shabab Power Plant project.

The project is aims to convert existing Open Cycle Gas Turbine power plant to Combined Cycle Gas Turbine power plant in El Shabab, increasing generating capacity from 1000MW to 1500MW, he noted.

The Egyptian minister also pointed out that his country will launch the first tranche of the project within the current month.

Moreover, the minister said the total investment cost up around US$577 million which will contribute by the European Investment Bank, European Bank for Reconstruction and Development (EBRD) and the Saudi Fund for Development (SFD).

He explained that the project comes within the framework of the Ministry’s efforts to implement its expansion plan which aims to enhance generating capacities without using additional fuel.

He further pointed out that it was contracted on the Business Advisory Project and finalized from all the environmental studies as a prelude to get the approval.