Egypt signed today a loan agreement worth € 205 million with the European Investment Bank (EIB), designated for El Shabab Power Plant project. The agreement was signed with the Central Bank of Egypt (CBE) and the Egyptian Electricity Holding Company (EEHC) with the presence of the Egyptian Minister of Planning Dr. Ashraf El-Araby. The loan has a 5-year grace period as payments are due within 19 years. "Our aim is to support the new Egypt's social and economic transition by financing projects encouraging growth and employment," Vice President of EIB Philippe Fontaine said in a statement. The project is aims to convert existing Open Cycle Gas Turbine power plant to Combined Cycle Gas Turbine power plant in El Shabab, increasing generating capacity from 1000MW to 1500MW, he noted. In a two-day visit to Cairo, Fontaine met on Sunday with Minister El-Arabai, where he expressed EIB's interest in helping to fund a number of projects listed in the interim government's programme for economic development and social justice, according to a statement from the Ministry of International Cooperation. Investments in the project total $900 m. In addition to EIB, the European Bank for Reconstruction and Development (EBRD), the Saudi Fund for Development (SFD), the Islamic Development Bank (IDB) and East Delta Electricity Production Company are all already contributing in financing the project. During the meeting, El-Araby praised the EIB's keenness to support Egypt's "efforts for achieving development" in the current transitional period. In 2013, EIB has signed several funding agreements in Egypt, such as a €600m agreement to finance the third phase of the third underground line, a €50m contract for developing air navigation control project, a € 57 million agreement for funding the second phase of improving water and sanitation services project and, in cooperation with the National Bank of Egypt, an €80m agreement to provide loans for small and medium enterprises. EIB's cooperation with Egypt dates back to 1977 and totals €6 billion.
