Improving power transmission in Egypt
Egypt’s electricity transmission provisions needs to be reinforced and extended in anticipation of increased demand. While virtually all of Egypt’s 80 million residents are connected to the national grid, this project will improve transmission efficiency, cater for the connection of new generating capacity from renewable sources and increase the possibilities for regional interconnections. Further environmental benefits will be brought to the table through reduced losses and improved reliability and quality of supply.
The project includes the design and construction of an underground cable, 10 transmission lines, 10 substations and 22 additional transformers on the country’s high and very high voltage electricity transmission grid. These will be operated and maintained by the Egyptian Electricity Transmission Company, the project’s promoter.
The project is currently being implemented, and completion is planned for 2015.
As lead financier for the transaction under the Mutual Reliance Initiative, the Bank has lent EUR 260 million, and coordinated the project appraisal and analysis necessary for the MRI partners’ credit approvals, as well as the negotiation of common legal documentation.
Detailed financing plan:
- AFD: EUR 50 million loan
- EIB: EUR 260 million loan
- KfW: EUR 50 million loan
- NIF: EUR 20 million grant
- Clean technology fund: EUR 150 million grant
- National contribution: EUR 232 million.