Utilities Middle East
Egypt signs $254mn financing deal for power distribution
New loan facility from Egyptian banks will enable the country build additional transformer stations to ramp up electricity access amid surging power demand
Egypt is seeking to boost its electric power distribution network following the signing of a $254mn (LE4bn) financing deal.
The Egyptian Electricity Transmission Company (EETC) signed a joint financing contract with several Egyptian banks that will allow it to add to and expand the country’s transformer stations.
The contract is between EETC and the National Bank of Egypt, the Commercial International Bank, Banque du Caire and the National Bank of Kuwait, according to the country’s ministry of electricity.
The loan will also allow EETC to construct more cables and lines for high-voltage power transmission in Egypt.
The National Bank of Egypt signed the agreement as the financing agent, the main arranger and the financing marketer, while the Commercial International Bank signed as the main arranger and the financing marketer, Banque du Caire as the main arranger and the financing marketer, and the National Bank of Kuwait as the arranger.
Egypt’s electricity sector is working to improve and develop the country’s transmission and distribution networks, including high-voltage transformer stations and control centres.
In order to accommodate new renewable energy generation capacities into the grid, the country has started implementing smart grid solutions.
This initiative is expected to boost grid resilience through reduction in electric power losses.
Egypt’s electricity and energy minister Mohamed Shaker said that these solutions will also support efforts towards developing strong grid interconnectivity with neighbouring countries.
Egypt has nearly doubled its entire distribution network.