Egypt inks €76M financing agreement with KfW Development Bank

Updated 1/2/2024 8:21:00 AM

Arab Finance: The Ministry of International Cooperation has signed soft development financing worth €53 million with the German KfW Development Bank for the smart grid development project for the Ministry of Electricity and Renewable Energy, the ministry stated.

The project will add 450 megawatts to the capacity of the Abis transformer station in the new city of Abu Qir, support the stability of the network after low-efficiency power stations are taken out of service, and improve the access to renewable energy produced in the Red Sea region to the northern coastal region.

The agreement comes within the framework of implementing the joint political declaration of the Nexus of Water, Food and Energy (NWFE) program.

Both sides penned another development financing worth €23 million to implement two energy efficiency projects and a project to rehabilitate hydroelectric stations.

The projects include Energy Efficiency Project 2 worth €8 million for the Ministry of Electricity and Renewable Energy, which is set to facilitate investment in energy efficiency projects, including small-scale photovoltaic energy.

The €15 million rehabilitation project of hydroelectric station 2 will develop the lighting system equipment, voltage regulators and speed regulators at the High Dam power station, speed regulators at the Aswan station, and the control system.

It is worth mentioning that the cooperation portfolio between Egypt and the German KfW Development Bank hit about €1.6 billion in the form of development financing, grants, and technical support directed to the sectors of renewable energy, irrigation, education, vocational training, and urban development, among others.