AfDB Supports Energy Sector Development in Egypt

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Tunis, 27 July 2005 – The Board of Directors of the African Development Bank (ADB), approved in Tunis on Wednesday, a loan of 154.3 million Units of Account* (175.9 million Euro) to finance the El Kureimat Combined Cycle Power Plant Project (Module II) in Egypt.

The project will help improve the provision of sufficient energy at minimum cost to the various sectors to promote economic growth and improve the standard of living of the population. The project’s objective is to increase the generation capacity of the Unified Power System (UPS) to partly meet the electricity demand in the short-to-medium term. The project involves the construction of a 750-MW combine cycle power plant in the premises of the existing El Kureimat Power Station.

The project components comprise:

-  Civil Works

-  Gas Turbine Generator and Auxiliaries

-  Steam Turbine Generator and Auxiliaries

-  Heat Recovery Steam Generator & Auxiliaries

-  Switchyard

-  Environmental Monitoring

-  Wrap-up Insurance

-  Project Management

When completed, the project will help make available sufficient and reliable power to the various consumers.

Power generated by the El Kureimat power plant will feed the UPS to partly meet the system demand. The beneficiaries include all categories of existing and potential customers from all parts of the country. This includes households, 98% of which have access to the grid and rely on electricity for their domestic energy requirement. As the electricity requirements of the household sector is increasing faster (10.7% per annum on average) than any other sector, this category of consumers will benefit most from the project. In addition, the agricultural sector will also benefit from the project, since the sector relies extensively on electricity for water to irrigate farmlands. Finally, the industrial sector, which constitutes one of the key pillars of the economy and a major source of employment will also benefit from the project.

As the Egyptian national grid is interconnected to the Middle East through the Jordanian grid and to the Maghreb through the Libyan grid, consumers in these regions will also benefit from the project, thus contributing to regional integration.

The Bank Group’s operations in Egypt started in 1974. To date, the Group has committed a total of UA 1.3 billion, about 1.5 billion Euro on 47 operations in the country.

Project Information Sheet

-  Sources of financing: ADB & UEEPC/EEHC

-  Estimated start-up date and duration: June 2005 ; 48 months

-  Executing Agency: Upper Egypt Electricity Production Company (UEEPC) /Egyptian Electricity Holding Company (EEHC) Nasr City, Abbassia, Cairo  Fax: (202) 2616520, Tel. (202) 2616520

-  Procurement of Goods and Services: The Gas Turbine Generator, the Steam Turbine Generator, the Heat Recovery Steam Generator Switchyard, Environmental Monitoring will be procured through International Competitive Bidding (ICB). Civil Works, which will be financed by UEEPC/EEHC, will be procured using their procurement methods.

1UA = EUR 1.204613 as at 01 /07/05

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