The Egyptian government on Monday signed an agreement to borrow US$550 million from the African Development Bank to finance the construction of a steam power station.
At a press conference on Monday, Planning and International Cooperation Minister Fayza Abouelnaga said the loan will be paid off over 20 years, including a five-year grace period with a 1 percent interest rate.
Abouelnaga said the Egyptian Electric Company, which is part of the Electricity Ministry, will pay off the loan to avoid burdening the state treasury.
The total cost of the project is US$972.9 million, of which $289.4 million will be financed locally.
The remaining funds for the project will come from the Islamic Development Bank and the Egyptian Electric Company.
The capacity of the power station would be 650 megawatts.
Translated from the Arabic Edition