(AFP File Photo)
The Kuwait Fund for Arab Economic Development (KFAED) agreed on Saturday to loan Egypt approximately $102m to invest in a power plant project located west of Cairo, according to a Ministry of International Cooperation statement.
The signing of the agreement was witnessed by Prime Minister Ibrahim Mehleb, who met with KFAED General Director Abdul Wahab Al-Bader and his accompanying delegation in Cairo.
Another contract worth approximately $3m was also signed for funding all the technical studies needed for the development of the Golden Triangle project. The project is aimed at exploiting Egypt’s natural resources and mineral wealth in the “Golden Triangle” region between Qena, Quseir and Safaga.
Agreements were signed, in the presence of the Ministers of Electricity, Renewable Energy, Industry and Foreign Trade, by Minister of International Cooperation Naglaa Al-Ahwany and Al-Bader.
The statement highlighted that the KFAED provides concessional loans, where the loan provided for the power plant project has a 2.5% interest rate and a repayment period of 24 years, including a six year grace period.
According to the statement Egypt has had very strong cooperation ties with the KFEAD since 1964, with the fund providing the country with 38 loans totalling approximately $2.4bn. Loans were injected for financing development projects in various sectors in the country.
According to the statement, both projects are of great importance to the country and its citizens. The power plant west of Cairo project aims to meet the growing demand for electricity by creating a 650MW electricity steam-generating station.
Al-Ahwani mentioned other financing packages that were previously provided for the power plant project. Some Arab financing institutions have contributed to the project, including $212m provided by the Arab Fund for Economic and Social Development. The Islamic Development Bank Group is providing $222m, and the Saudi Development Fund is contributing $92m.
