Egypt’s state-run Egyptian Electricity Holding Co. has signed Wednesday a $650 million loan agreement with BNP Paribas to finance the upgrade of Assiut and West Damietta power plants.
The project is part of the Egyptian government’s emergency power generation plans – phase II, aiming to convert the two plants from simple to combined cycle, increasing total capacity from 1500 to 2250 MW.
The BNP Paribas-led long-term financing project is guaranteed by the Egyptian Ministry of Finance; and entirely covered by Italian Insurance group Sace.
An alliance comprising U.S. General Electric and Egypt’s Orascom Construction will implement the upgrade of the two plants under the EPC finance system over three years.
Egyptian Minister of Investment Dalia Khorshed has witnessed the signing the EEHC and BNP Paribas, which took place in Cairo on Wednesday.