Kuwait Fund for Arab Economic Development (KFAED), Middle East’s first institution to undertake active role in international development affairs has signed a financing agreement to fund the construction of a major power plant in Egypt to a tune of US$100 millions. The fund currently has 105 beneficially countries and boosts over US$18000 million in loan commitments.
The funding will go towards funding the South Helwan Power project whose construction cost is valued at US$1.7 billion. According to the terms of the agreement, the loan has a 20 years repayment period at an annual interest rate of 2.5%. The loan also has a five year grace period.
KFAED joins a group of other partners that have already signed into financing this project. World Bank has offered about US$503.8 million, the Islamic Development Bank has loaned in US$450 million, the Arab Fund 55 million Kuwait dinars while the African Development Bank has planted in US$ 90 million.
The agreement was signed by Egypt’s minister in charge of International Cooperation Sahar Nasr and Abdulwahab Ahmed Al-Bader, the Director Generalof Kuwait Fund and witnessed by Egypt’s Minister of Electricity Mohamed Shaker.
Upon completion, the project will add 1950 megawatts to Egypt’s national grid. This will help alleviate the county’s power deficit and enhance electricity reliability to the economy.
The Helwan Power project comprise of two components. The Helwan South power plant that comprise of 3×650 MW superficial steam technology power plant powered by gas as the primary fuel. The second component comprises of gas pipelines. It is made of two gas pipeline that deliver about 12.5 million cubie metres of gas daily.
The funding of this project brings to 41 the total number of Egypt’s projects financed by the Kuwait Fund hence raising the volume of cooperation portfolio between Egypt and The Kuwait fund to US$2.6 billion.