Russia has agreed to fund the first ever nuclear power plant in Egypt by extending a loan of $25b towards the construction of the plant. The nuclear power plant in Egypt is being constructed by Rosatom Russia’s state owned company.
This will be one of the largest project being funded by Russia. Upon completion the construction project is expected to help meet the country’s increasing energy demand.
The loan comes as part of the agreement reached by the two countries earlier this year. It will cover 85 percent of the costs and Egypt will have to provide the remaining 15 percent.
The two countries agreed to build a modern nuclear power plant in Dabaa which is about 140 Kilometres southern of Cairo and once completed it will be one of the largest projects that have been agreed upon by Russia and Egypt.
The project will comprise four 1200 MW nuclear power generators that will be installed by a few local companies to attain the local stake agreement.
According to the agreement, Russia will provide the loan in installments from 2016 to 2018, while Egypt will have to repay over a 22-year period. The first repayment is scheduled for 2029, at an annual interest rate of three percent.
Russia being a county with a good experience in nuclear power production it will produce experts that will supervise and undertake the project.
Russian President Vladimir Putin early this year visited Egypt and agreed to contribute in the construction of the project.
The two countries have signed a number of agreements along with the memorandum of understanding on the nuclear plant construction.