Project Details
ID: P-EG-FAA-016 Name: SUEZ THERMAL POWER PROJECT Status: Ongoing Country: Egypt
Sector: Power Approval date: 15-Dec-2010 Task Manager: EL-ASKARI Khaled Mohamed Samir, RDGN1
Total cost: 635841536
Currency: UAC
Source(s) of financing
AfDB: 359488872.2
Cofinanced: 39707179.97
Government: 236641720.3
Implementing Agency: EEHC / EDEPC Location: Suez City


The sector goal is to increase the generation capacity in the country to meet the demand increase and maintain system reliability, thereby promote economic growth and improve the standard of living of the population. This project contributes to the sector's goal as it is intended to increase the capacity and maintain the reliability of the power generation system to contribute toward meeting the electricity demand on the Unified Power System (UPS) for the manufacturing, tourism, housing and social sectors in the short-to-medium term. Electricity supplied through the UPS is expected to bring the following benefits: (i) improved reliability and flexibility of the power system as a result of improved and increased generation capacity, (ii) employment creation through increased business activity as a result of energy availability, (iii) increased opportunity to export power to neighbouring countries with its related advantages, both political and economic and (iv) improved social service delivery in housing developments, hospitals and schools. Stable access to affordable power in rural and urban residential areas and social sectors will also contribute toward improving the quality of life for women and children through time saving on household work and care giving, and through increased employment opportunities.


The project involves the construction of a conventional thermal power plant consisting of an indoor steam turbine generating unit rated at 650 MW with a design based on sub-critical heat cycle and condenser once-through cooling using water from the Gulf of Suez. The facility will be constructed on the site of an existing non-operational power plant which is to be demolished. The plant is located in the vicinity of Suez city approximately 150 km east of Cairo. Generated power will be fed to the UPS through an existing 220 kV power transmission line.


The project aims to enhance the socio-economic development of Egypt by increasing the generation capacity by 650 MW to partly meet the electricity demand on the national grid in the short-to-medium term. It will therefore help in making available reliable and affordable power to the various consumer sectors, which should subsequently support job creation and promote the competitiveness of the economy.


The timely implementation of the Suez project is critical to the realization of the electricity sector goals and economic objectives for Egypt. The fact that the Bank is currently financing three electricity generation projects in Egypt makes the Bank an ideal partner to finance this operation. Moreover, the Bank has gained expertise in this field, developed since 1974 and strengthened by the 16 projects that have been finalized between 1974 and 2003. This project will also benefit from the synergy that would be created with the ongoing projects the Bank is financing, in terms of resources efficiency for supervision, lesson sharing and cumulative presence to contribute toward sector reforms.Finally, as the request received by the Bank from the country indicated that the loan is required to finance part of the total costs of the project with IDB, the Bank will benefit from this project to further consolidate its collaboration strategy with other financing institutions and partners.