EIB Nuberiya loan signed

13 September 2002

The European Investment Bank (EIB) signed on 10 September a Eur 150 million ($147 million) long-term loan to part-finance phase 1 of the 1,500-MW Nuberiya power station project (MEED 6:9:02). The borrower, Egyptian Electricity Holding Company (EEHC), is also seeking funds for phase 2, as well as an emergency programme, which envisages the installation of 2,250 MW of new generating capacity to cope with a higher-than-expected growth in power demand.

Power demand has been growing by about 7.5 per cent a year, as against earlier government forecasts of 5.5-6.5 per cent a year. Over the past year alone, peak demand has grown by 1,000 MW to reach 14,000 MW. The sharp rise has put growing strain on installed nameplate capacity which stands at 16,500 MW.

As part of the emergency programme, EEHC is understood to be considering adding 750-MW modules at three locations around Cairo. This is in addition to existing projects including Cairo North and Nuberiya and future planned projects at Cairo West and Ayoun Mousa.

A series of contracts have already been let on the 750-MW Cairo North project. The latest, signed on 10 September, went to a team of the local Misr Sons Development (Hassan Allam Sons)and Athens-based Consolidated Contractors International Company (CCC)for the £E 112 million ($24.5 million) civil works package (MEED 16:8:02).

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