Egypt: US$ 325 Million AfDB Loan for Abu Qir 1300 MW Steam Power Project
Tunis, 14 November 2007 – In line with its increasing focus on infrastructure development, the African Development Bank (AfDB) will support Egypt’s Abu Qir 1300 MW Steam Power Project following the approval of a loan of 214.49 million Units of Account (UA*), about US$325 million by the Bank’s Board of Directors on Wednesday in Tunis.
The objective of the project is to increase the generation capacity of the Unified Power System (UPS) by about 4% in the year 2012, to meet the electricity demand on the system in the short-to-medium term. The project, when completed, will contribute toward making available sufficient and reliable power to the various consumers including households, agriculture, business and industries. The energy sector goal is to sustain economic growth by making available adequate energy at minimum cost to the various economic sectors thereby improving the standard of living of the population.
The project involves the construction of a 1300 MW (2x650 MW) steam turbine power plant adjacent to the existing Abu Qir Power Station about 33 km to the east of Alexandria. It comprises the following components:
- Civil Works
- Supply and installation of equipment including steam turbine generators, steam generators and auxiliaries, as well as mechanical equipment such as pipes, electrical parts and a switchyard.
- Environmental Monitoring
- Project management including wrap up insurance
Power system studies have indicated an emerging shortfall in electricity supply by 2011/12 unless new capacity is installed. Therefore, the direct benefits of the proposed project will be the economic value of the incremental energy delivered to consumers from the new plant. Indirect economic benefits would be realized through the project’s linkages with various economic sectors such as agriculture, manufacturing and tourism which rely, to a large extent, on the availability of cheap electricity to function efficiently.
The project is estimated to cost US$ 1,322.73 million (UA 874.33 million). The ADB loan will cover 24.5% of the total cost. Other financiers are the Islamic Development Bank (IDB), the Arab Fund (AFESD), the Kuwait Fund (KFAED), and the Egyptian Electricity Holding Company (EEHC).
In November 2006 the Bank supported comprehensive structural and financial reforms initiated by the government of Egypt with a loan of US$ 500 million, the highest amount ever approved by the institution for any of its regional member countries.
The ADB Group began operations in Egypt in 1974. To date, its commitments in the country stand at US$ 2.5 billion in 49 operations.
* 1 UA = USD 1.57188 = EGP 8.62238 as at 14/11/2007