The National Bank of Egypt (NBE) has arranged a number of syndicated loans for the electricity sector in Egypt over the past five years, at a value of approximately EGP 39.4bn, according to NBE Deputy Chairman Mahmoud Montasser.
NBE contributed 26% of these loan’s total value and the liquidity was directed to establish and increase the capacity of 20 power plants across Egypt, including Ain Sokhna, North Giza, West Cairo, the New Administrative Capital. That is in addition to funding a number of mobile units used in producing electricity, Montasser said.
NBE directly granted the electricity sector EGP 2.4bn to operate power plants in Banha and Abu Qeir, to support the infrastructure of electricity transmission, and to perform maintenance of the power plants and transformers affiliated to the Egyptian Electricity Transmission Company.
A banking coalition led by NBE signed a funding contract for the Egyptian Electricity Holding Company last week, through which the company was granted EGP 10bn to contribute to the fund of establishing three giant power plants.
In addition to meeting the rapid increase in public electricity consumption, the Egyptian banking sector has prioritised support for the power sector, since it is vital for the government’s emphasis on economic growth. The government hopes that investment into the electricity sector will encourage investors to launch new economic projects.