NBE, Banque Misr Consider Offering EGP1.4 Bln For Suez Power Plant

The National Bank of Egypt (NBE) and Banque Misr study arranging a long-term syndicated loan worth EGP 1.4 billion for the East Delta Electricity Production Company. Both banks are expected to sign a contract within few days.

Sources told Amwal Al Ghad that the loan will be used to finance the establishment of a 650-megawatt steam-power plant in Suez, as part of the Ministry of Electricity and Energy’s five-year strategic plan for the period from 2012 to 2017. The steam-power plant in Suez is expected to be operated in December 2015.

The Ministry of Electricity and Energy asked both banks to provide the 12-year finance as soon as possible so as to meet the excess load on electricity. Therefore, both banks may ask other banks to contribute to the loan in order to provide such finance as soon as possible.

The estimated cost of the project is EGP 5.5 billion in which African Development Bank and Islamic Development Bank will contribute as foreign financiers.

The Minister of Electricity and Energy signed two contracts worth EGP 1.5 billion with German, Italian and Egyptian companies who won the bid to supply and install the steam turbine, condenser and boiler of the steam-power plant project in Suez, sources said.

The boiler will be powered by natural gas and heavy fuel (mazot). The Ministry works on assigning a number of Egyptian companies to establish the project so as to support the local production.

The National Bank of Egypt (NBE) is the largest financier of electricity sector in the last five years as it currently arranges a number of loans such as the EGP 4.6 billion loan which will be used to finance power plants in Ismailia with capacity of 1000 megawatt and a power plant in Damietta with capacity of 500 megawatt.