Business | Economy

IDB signs $120m loan deal with Egypt

Funds to help launch power generating station in Banha, northwest Cairo, with a capacity of 750 megawatts

  • By Abdul Nabi Shaheen, Correspondent
  • Published: 00:00 October 24, 2010
  • Gulf News

Riyadh:  The Islamic Dev-elopment Bank Group (IDB) and the Egyptian government recently signed three deals in Cairo under which the Jeddah-based bank will offer financial services amounting to $120 million (Dh440 million) to Egypt.

The documents were signed by Egyptian Minister of International Cooperation Faiza Abul-Naja and IDB Board Chairman Ahmad Mohammad Ali with Prime Minister Ahmad Mohammad Nazif and Minister of Electricity and Energy Hassan Ahmad Younis attending.

The funds will be mainly used to launch a combined cycle power generating station in Banha, northwest Cairo, with a capacity of 750 megawatts.

Clean energy demand

The planned station will use both steam generators and gas turbines to produce hot combustion gases, then the oxygen-containing gases from the turbines will be used to support combustion of the fuel in the steam generator.

It aims to make better use of the country's gas resources, meet the growing demand for clean low-cost energy and improve the environment, Younis told reporters at the signing ceremony.

"The total cost of the station tops $806 million of which $235 million will be covered by the government and $30 will provided by the Middle Delta Electricity Production — the developer of the project," the minister added.

The documents also include a Sharia-compliant $10 million loan to support medium and small enterprises in Egypt.

Nazif received the IDB chief to consider the plans for future cooperation and the bank's role in Egypt's economic development.

The prime minister welcomed the IDB decision to choose Cairo as the seat of its regional headquarters in the North Africa region.

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