Egypt secures $4 billion to construct three combined cycle plants

Egypt’s state-owned utility Egyptian Electricity Holding Co. (EEHC) has secured $4 billion (€3.5 billion) in financing to construct three combined cycle power plants with a combined capacity of 14,400 MW. Germany’s Deustche Bank said it jointly arranged the financing with UK’s HSBC and Germany’s KfW’s IPEX Bank, through a consortium formed by 17 international banks.

The loans, guaranteed by Egypt’s Finance Ministry, will fund three power plants in Egypt — the Beni Suef, Burullus and New Capital. Siemens will supply gas turbines for the trio of 4,800 MW natural gas combined-cycle power plants.

According to Deustche Bank, the Egyptian order is the largest in the company’s history, with total investment cost pegged at $6.8 billion(€6 billion). Upon completion in 2018, the plants are likely to be the largest in the world, which are expected to boost Egypt’s electricity production by 50 percent.