European bank to fund $200m for new gas-fired plant in Egypt

The European Bank for Reconstruction and Development (EBRD) has agreed to provide a $200m loan for a new gas-fired power plant in Egypt. EBRD will provide the loan to the Egyptian Electricity Holding (EEHC) that will be on-lent to West Delta Electricity Production (WDEPC) to develop a 1.8GW combined cycle gas-fired power plant at Damanhour in north-west of Cairo.

The new power plant is expected to reduce energy shortages in the country by increasing efficiency and available generating capacity. Once operational, the power facility is likely to reduce carbon footprint by 1.5 million TCO2e each year. The estimated $1.3bn power project is also being supported by the European Investment Bank, the Arab Fund for Economic & Social Development and the African Development Bank.

EBRD Mediterranean southern and eastern region managing director Hildegard Gacek said: "Through this investment we're offering full support to diversify the sources of energy generation, energy efficiency and clean energy. Overcoming the chronic supply shortages is also essential for sustainable economic growth and the living conditions of the population."

Egypt international cooperation minister Sahar Nasr said the project would help Egypt to face the increasing power demand from the industrial, domestic and agriculture sectors, and reduce the burden on the main electricity grid.