Egypt has secured a US$55 million loan from international lenders for a 650MW power plant.

OPEC Fund for International Development (OFID) and the Egyptian Ministry of International Cooperation signed the agreement to build the plant in the Assiut Governorate, an administrative district in Upper Egypt.

Upon completion, the plant will serve the 3.5 million residents of the Assiut city as well as the larger population as the generated power will feed into the national grid.

The project is in line with the government’s overall strategic objective of meeting the country’s growing electricity demand, and is expected to contribute to Egypt’s economic growth by providing a safer, more reliable and efficient electric supply.

Commenting at the loan signature, director-general of OFID Suleiman J Al-Herbish, reiterated OFID’s support of Egypt’s plans to upgrade its energy sector in particular and to promote progress in all other sectors essential for economic growth in general.

Mr Al-Herbish further highlighted the important fact that the share of energy projects in OFID’s portfolio has increased in the past 10 years from 19 per cent to 30 per cent, with Egypt’s share doubling. This has made Egypt the OFID beneficiary country with the greatest support, in both the energy sector and across the board.

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