The European Investment Bank (EIB) has signed an agreement, under its Facility for Euro-Mediterranean Investment & Partnership (Femip), to provide loans totalling Eur 310 million ($410 million) for power generation and gas projects.

The bulk of the financing

will be for a Eur 260 million ($344 million) loan to Egyptian Electricity Holding Company for the twin 750-MW power plants in Sidi Krier

and El-Apf. Femip will also provide Eur 50 million ($66 million) to Egyptian Natural Gas Holding Company (Egas) to finance the design and construction of a high-pressure gas transmission system. The 116-kilometre-long pipeline will provide gas to industrial users from Abu Qurqas on the Nile down to Assiut.

At the same time, Femip is investing Eur 5.6 million ($7.4 million) in Beltone Capital, which specialises in private sector investments. The move fits with the EIB's strategy to increase private equity in Egypt. It also marks the first time Femip has invested its risk capital resources in an open-ended investment company, where new shares in the company can be issued should demand rise (MEED 24:11:06).