World Bank loans Egypt US$240 million for Giza North phase III

Last week, Egypt and the World Bank signed a US$240 million loan agreement as part of a package to finance the third stage (500 MW) of the country’s 1,500 MW combined cycle gas turbine North Giza power facility.

The project was approved in mid-2010 and later that year Egypt and the World Bank signed an agreement on the initial loan of US$600 million. In addition, the European Investment Bank provided a loan of US$340 million and the OPEC Fund for International Development provided US$30 million with local funding comprising a further US$380 million.

The third stage of the North Giza plant will use natural gas as the main fuel and light diesel as the backup. The most recent loan covers the addition of two 250 MW units, and these are scheduled to be operational on their simple cycle in May 2014, and on their combined cycle in early 2015. The overall three stage project will supply power to more than five million households in the Giza governorate.

Egypt’s electricity and natural gases corporations will implement the project, which will be linked to the national grid.