NSGB, Faisal Bank Join Consortium Funding South Helwan Power Plant
National Société Générale Bank (NSGB) and Faisal Islamic Bank of Egypt have joined the banking consortium, comprised of the National Bank of Egypt (NBE), Commercial International Bank (CIB) and Arab African International Bank (AAIB), which is set to submit an official offer to arrange EGP 3 billion syndicated loan to the Upper Egypt Electricity Production Company to build up South Helwan Power Plant.
Sources said the banks will meet with the company in the next days to submit their offer and finalize all the procedures after the company asked for accelerating the procedures to receive the loan as soon as possible.
The power plant will operate three natural gas-run steam turbines and will be connected to the national power grid to meet the rising demand for electricity.
OPEC (Organization of the Petroleum Exporting Countries) has approved to offer US$ 50 million finance and Islamic Development Bank (IDB) also approved to offer an additional loan worth US$ 250 million to finance the power plant. The establishment cost of the South Helwan Power Plant is 13 billion.
The electricity sector is one of the vital sectors in Egypt which receives finances from banks after 2011’s revolution. The East Delta Electricity Production Company received loan worth EGP 1.6 billion from the National Bank of Egypt (NBE), Banque Misr, Piraeus Bank Egypt, Industrial Development Bank of Egypt and Faisal Islamic Bank of Egypt to finance the establishment of four productive units at the Suez thermal power plant. The company also received loan worth US$ 110 million from the National Bank for Development (NBD), Banque Misr, Egyptian Gulf Bank, Al Baraka Islamic Bank of Egypt, Bank Audi Egypt and United Bank Egypt to finance the importing of turbine spare parts, in addition to EGP 4.6 billion loan.
