Published On: Fri, May 16th, 2014

Egyptian President approves two loan agreements

Adly Mansour, Egyptian  President

Adly Mansour, Egyptian President

Egyptian Interim President Adly Mansour approved Thursday two loan agreement, one with Kuwait Fund for Arab Economic Development (KFAED) totaling USD 100 million, and another with the Arab Fund for Economic and Social Development (AFESD) totaling USD 162 million.
The two loans will help finance the upgrading of a power plant in Asyut to increase its generating capacity to 650 Megawatts, spokesman for the Egyptian presidency Ambassador Ehab Badawi said.
Badawi pointed out that the KFAED’s is a soft loan with 56.81 percent of its value being in the form of grant, and the rest will be repaid over 18 years with a grace period of six years.
Earlier this month, President Mansour approved a soft loan from AFESD worth USD 200 million to help finance the same project.
Last March, President Mansour also issued a decree approving a loan agreement between the Egyptian government and the Arab Fund for Economic and Social Development to help finance a power linkage project between Egypt and Saudi Arabia signed in Cairo.
Badawi explained that the project will connect the two systems the largest power plants in the Arab world, which will allow the exchange of power off-peak times as well as participation in electric generation capacity reserves during times of emergency and malfunctions, and would enhance the stability of electricity networks in the two countries.
Badawi added that the soft loan worth USD 162 million and Egypt will get about 50.86 percent of its value in the form of a grant, to be repaid over a period of time exceeding 21 years, with a grace period of four years. (end) smg.

Source : KUNA Kuwait News agency

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