Egyptian banks to fund electricity project in Suez

Egypt's five-year plan is expected to cost 80 billion EGP Egyptian National Bank, along with four other banks have signed a contract with East Delta Electricity Production Company (EDEPC) to provide financing of up to 1.6 billion EGP for a thermal power station in Suez. The project, which could

cost 6.2 billion EGP in total, is part of Egypt’s five-year plan.
Vice-chairperson of the Egyptian National Bank, Sherif Olwy, said that his bank and Banque Misr would provide 75 percent of the loan. It is believed the Egyptian National Bank will pay 810 million EGP, while Banque Misr would pay 400 million EGP.
He added that cooperation between the different sectors to support the development of Egypt’s electricity is important, whether in terms of funding or financing alternatives.
Vice-chairperson of Banque Misr, Mohamed Abbas Faied, said that the banks studied the financial requirements of the electricity sector, adding that the they were working to meet the financial needs of what is seen as an important national sector.
He stressed that the Egyptian banks appreciate that the Egyptian electricity sector suffers from high pressures because of the potential shortfall in generating electricity, clarifying that the banks expressed their readiness to finance the five-year plan, which extends to 2017.
He added that the banks and electricity sector should be prepared for the consumptions and additions that will occur on the national network to provide the necessary funding.
Hamdy Azab, chairperson of East Delta Electricity Production Company, said that the banks decided to help the sector because they realise the pressure on companies.
Mohamed Helmy Habib, an official in Egypt’s Holding Company of Electricity, said that the investments between 2007 to 2012 had reached 60 billion EGP. In the five-year plan between 2012 to 2017, this figure will be closer to 80 billion EGP.