Egypt’s Power Firm Seeks $1 Bln Loan To Fund Power Plants-Paper

State-owned Egyptian Electricity Holding Company has asked the state National Bank of Egypt (NBE) for a $1 billion loan to fund the building of new power stations, a bank official said in remarks published Monday.

The bank has not reached a decision yet on the request for a 10-year loan, Mahmoud Montasser, a board member of the bank, told el-Bursa newspaper.

He gave no more details.

Egypt is bracing for a summer of power cuts and possible fuel and food shortages that could spark unrest.

The oil ministry said last month that power cuts are due to a lack of funds to buy fuel for power stations. The ministry said it had warned power industry officials that failure to arrange financing would disrupt fuel supplies.

Power cuts have become more frequent as the government struggles to meet the country’s fuel supply needs. The problem is expected to worsen as summer approaches and home owners switch on their air conditioning.

The government announced last month that Cairo’s airport will close most of its runways for four hours each day from early June to save power.

Qatar said last week it would extend gas supplies to the Middle East’s most populous nation this summer as needed.

Egypt has endured two years of political instability since the overthrow of President Hosni Mubarak and is trying to control a soaring budget deficit and secure a $4.8 billion loan from the IMF.

Reuters