| Project Detail |
Location:
Egypt
Project number:
54716
Business sector:
Energy
Notice type:
State
Environmental category:
A
Approval date:
13 Dec 2023
Status:
Concept Reviewed
PSD disclosed:
12 Oct 2023
Project Description
Provision of a sovereign loan of up to EUR 165 million to the Arab Republic of Egypt, to be on-lent to the state-owned Egyptian Electricity Transmission Company ("EETC"), to finance the upgrade and reinforcement of the electricity transmission grid in Egypt.
The proceeds of the loan will be used to finance (i) the upgrade of a 500 kV substation in the Cairo governorate in Egypt that is crucial for the stability of the network and is directly linked to the closing of a gas-powered power plant (Shoubra El Kheima) under the Energy Pillar of Egypts Nexus Water, Food & Energy (NWFE) initiative, and (ii) the construction of a 200 km high-voltage overhead transmission line (OHL) that will relay c. 2.1 GW of renewable energy from the Gulf of Suez region, where several wind projects are currently under development or construction.
Project Objectives
The Project will be the first grid investment under a USD 2 billion investment programme to be implemented by EETC under the NWFE initiative. The Project will help unlock Egypts renewable energy potential by tackling one of the main obstacles impeding the roll-out of more renewables. Expansion and upgrade of the ageing transmission and distribution network is crucial in allowing Egypt to achieve its long-term strategy of having 42% of the electricity generated on peak load come from renewables by 2030.
The quantifiable benefits of the Project include the connection of new loads and the reduction of grid losses. The unquantifiable benefits include relief of overloading on neighbouring substations, improvement of voltage profile, and increase of system security. |
