The project is to be financed by the European Investment Bank (EIB), the Kuwait-based Arab Fund for Economic & Social Development and the Kuwait Fund for Arab Economic Development. An EIB loan for Eur 150 million ($150 million) for the project’s first phase is set to be signed in mid September. A similar amount has been pledged for the second phase. The Gulf agencies have pledged $75 million each for the first phase, and are expected to back the second phase as well.
The scheme is being carried out in a similar fashion to the 750-MW Cairo North power station, which is now under construction. The US/local Power Generation Engineering & Services Company (PGESCo)is acting as engineering, procurement and construction management (EPCM) contractor on both schemes.
The contract for the two 250-MW gas turbines for Cairo North was signed in March with a Japanese team of Mitsubishi Heavy Industriesand Tomen Corporation for $102 million (MEED 22:3:02).