Egypt secures $195m loan for power station
Cairo, April 30, 2014
Egypt, facing the risk of ever-worsening blackouts, has approved a 55-million-Kuwaiti dinar ($195.52 million) loan from the Kuwait-based Arab Fund for Economic and Social Development to help finance an upgrade of a power plant.
Egypt needs at least $5 billion to invest in its dilapidated electricity generation system, a government official told Reuters earlier this month
The loan from the fund, which lends money for development projects in the Middle East, is for a project at the al-Walidiya plant in the southern city of Assiut, a cabinet statement said.
Renovation to rundown power plants is badly needed. The Electricity Ministry says that about a quarter of Egypt's 51 power stations are more than 20 years old. New plants also need to be built to boost power capacity to meet soaring consumption in the Arab world's largest most populous country.
The loan was approved by the cabinet after an initial agreement signed by President Adly Mansour last month, according to the statement. -Reuters