The Kuwait Fund for Arab Economic Development (KFAED) has signed a KD30m ($100m) loan for Helwan power plant in Egypt with the Upper Egypt Electricity Production Company.

The gas powered steam turbine 1950MW plant will cost $1.7bn. $1.2bn, or 73 per cent of the costs will be in foreign currency.

It is due for completion at the end of 2016 after work began in 2014. Japan’s Mitsubishi Heavy Industries and Toyota Tsusho Corporation are providing turbines and local Hassan Allam & Sons, France’s Alstom and Germany’s KSB Group are carrying out civil works.

The loan has a 25 year term including five years grace. The interest rate is 2 per cent with a 0.5 per cent administration fee.

Earlier loans for the power plant worth $1.5bn came from development financial institutions; the World Bank ($585m), the Arab Fund for Economic and Social Development (AFESD) ($194m), the Islamic Development Bank (IDB) ($450m), KFAED ($214m) and the Opec Fund for International Development (OFID) ($40m).

Egyptian commercial banks also signed an E£3bn ($335m) loan for Helwan and Assiut power plants in early 2015.

KFAED’s director general told the Egyptian press that the fund would lend $300m in 2016/17 on projects such as water desalination roads in the Sinai, if they go ahead promptly.