The Director-General of the OPEC Fund for International Development (OFID), Mr Suleiman J Al-Herbish and Egyptian Minister of International Cooperation, HE Dr Naglaa El Ehwany, have signed a US$55m loan agreement to help finance the construction of a 650MW power plant in the Assiut Governorate in Upper Egypt.
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. Upon completion, the plant will not only serve the 3.5 million residents of the Assiut city, but also a larger population as the generated power will be connected to the national grid.
Commenting at the loan signature, Mr Al-Herbish, reiterated OFID's unwavering support to Egypt's plans to upgrade its energy sector in particular and to promote progress in all other sectors essential for economic growth in general. He further highlighted the important fact that the share of energy projects in OFID's portfolio has increased in the past 10 years from 19 percent to 30 percent, 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.
OFID's cooperation with Egypt dates back to 1977. To date, OFID's support to Egypt totals just over US$830 million, covering the agriculture, education, energy, health, national development bank sectors, as well as those of a multi-sectoral nature.
In her own statement, HE Dr El Ehwany thanked OFID for its longstanding support to the people of Egypt and explained that the present loan would help her country to promote sustained economic growth and improve living standards among the population by satisfying the increased demand for energy in a cost-effective and reliable manner.
SOURCE OPEC Fund for International Development (OFID)