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Friday, December 22, 2006

EIB enhances support to Egypt's energy sector

Local development, Energy, Industry, Co-op & Development,Local and Regional authorities,Corporations,Administrations States,SMEs,Non-profit organisations,

News The European Investment Bank (EIB) is giving new impetus to its financing in support of Egypt’s energy sector.

Under its Facility for Euro-Mediterranean Investment and Partnership (FEMIP), the EIB is providing loans for a total amount of 310 million Euros for power generation projects and for natural gas transmission. A EUR 260 million loan to the Egyptian Electricity Holding Company (EEHC) will finance the construction of two 750 MW gas-fired combined-cycle power plants at El Atf in the north-western Nile Delta and at Sidi Krier on the Mediterranean coastline, 30 km west of Alexandria. This project responds to the rapidly increasing demand for electricity in Egypt, which is estimated to require an additional 6925 MWe of new capacity to be commissioned during the period 2008-2012. The two power plants will produce electricity at a competitive cost and with a relatively low environmental impact, based on the use of indigenous natural gas. Another EUR 50 million loan to the Egyptian Natural Gas Holding Company (EGAS) will finance the design, construction and commercial operation of a new pipeline within the Egyptian national high-pressure gas transmission system. The pipeline, which extends about 116 km, along the river Nile, from Abu Qurqas to Asyut in the south of Egypt, aims at supplying natural gas to industrial enterprises and power plants in view of the increasing gas demand in central and southern Egypt. Since 2000, under the EuroMed II Mandate and Mediterranean Partnership Facility, the EIB has committed almost 2.4 billion Euros of long-term loans to both public and private sector projects in Egypt. The European Council of Brussels on 14-15 December 2006 agreed to deepen and broaden the dialogue with Mediterranean countries, and to strengthen practical cooperation. In the context of the new EuroMed Mandate, the lending ceiling for Mediterranean countries has been set at EUR 8.7 bn for the period 2007-2013. This effectively doubles the loan resources available to the 9 partner countries of the region (Morocco, Algeria, Tunisia, Egypt, Gaza-West Bank, Israel, Lebanon, Syria and Jordan) compared to the previous mandate.

Source :  European Investment Bank


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