Egypt: Nine Banks to invest $1.5 billion in coal-fired power plant

In Egypt, a consortium nine local banks have pledged to invest about $1.5 billion in a project to increase the North African nation’s electricity capacity.

The financing, granted as a loan, will benefit the construction of a coal-fired power station with a capacity of 6,000 MW in the Hamrawein area in the coastal region of the Red Sea, Ecofin News Agency reported.

The consortium includes the Commercial International Bank (CIB), QNB Al-Ahli, the Arab African International Bank (AAIB), AlexBank, Ahli United Bank, Export Development Bank of Egypt (EDBE), Egyptian Gulf Bank, Societe Arab Internationale de Banque (SAIB), and Emirates NBD Egypt.

The plant, which is expected to be completed within 84 months, will be developed in the Hamarawein port, which is currently used for phosphate exports, about 150 kilometers south of Gouna.

Estimated at $10 billion, the new plant is set to add 6,000MW to the country’s electricity grid.

Egypt’s ministry of power has earmarked $386 million for upgrading the north African nations’ electricity grid in the next appropriation bill. The Ministry plans to produce 7,000 MW through coal-fired plants by 2023.