A Loan Agreement was signed today in Cairo between the Government of the Arab Republic of Egypt and the Kuwait Fund for Arab Economic Development, whereby the Fund will make a Loan in the Amount of 30 Million Kuwaiti Dinars (equivalent to about US$105 Million), to the Government of the Arab Republic of Egypt, to assist in financing the Expansion of Cairo West Steam Power Station Project. An Agreement concerning arrangements for implementation of the Project (Project Agreement), was also signed between the Kuwait Fund for Arab Economic Development and Cairo Electricity Production Company, which is undertaking the Project. A Memorandum of Understanding was also signed between the Government of the Arab Republic of Egypt and Kuwait Fund, whereby the fund will provide KD 1 Million for the financing of a study aimed at the preparation of master plan for the development of the Golden Triangle (Safaga - Al-Qaseer - Qina).

The Loan Agreement and the Memorandum of Understanding were signed on behalf of the Government of the Arab Republic of Egypt by Her Excellency Dr. Najla Al Ahwani, Minister of International Co-operation, while the Project Agreement was signed on behalf of Cairo Electricity Production Company by Eng. Shaban Khalaf Ahmed Mohammad, Chairman of the Board of Directors and Managing Director of the Company.  Mr. Abdulwahab Ahmed Al-Bader, the Director-General of Kuwait Fund for Arab Economic Development, signed the Loan and Project Agreements and the Memorandum of Understanding on behalf of Kuwait Fund.

The Project aims at meeting the increasing demand for electric power and energy in the Arab Republic of Egypt, by setting-up a steam power generation unit with a capacity of about 650 MW.

The Expansion of Cairo West Power Station Project consists of constructing a new power generation unit within the existing Cairo West Power Station in Sakil Village, Giza Governorate. The New Unit will use natural gas as primary fuel and heavy fuel oil (Mazout) as back-up fuel.  The Project includes a 650 MW steam power generation unit with all required auxiliaries and services needed to generate power. Also included, is a switchyard and gas insulated substation (GIS) to connect the New Unit to the interconnected national transmission grid. The Project also includes the provision of Consulting Services for the supervision of construction of the Project. The Project is expected to be completed in the fourth quarter of 2019.

The total cost of the Project is estimated at about 5.468 Billion Egyptian Pounds, equivalent to about 229.73 Million Kuwaiti Dinars, of which about 161.03 Million Kuwaiti Dinars, is in foreign currency, representing about 70% of the total cost of the Project. The Fund's Loan in the Amount of 30 Million Kuwaiti Dinars will cover about 13.06% of the total cost of the Project, and about 18.63% of the total costs in foreign currency.

The Loan shall be for a period of 24 Years, including a grace period of 6 Years, and shall be repaid in 36 semi-annual installments, the first of which will be due on the first date on which interest or other charges will fall due, in accordance with the Loan Agreement, after the expiration of the said grace period. The Loan bears an interest rate of 2.0% per annum, in addition to a rate of 0.5% per annum to meet administrative costs and other expenses incurred in the implementation of the Loan Agreement.

The study to be financed under the Memorandum of Understanding aims at the optimum utilization of the human and natural resources in the golden Triangle area during the period 2015 ? 2045 through the integrated development of industrial and social services projects for achieving sustained development on the basis of a master plan emerging from the above-mentioned study.  Such plan is expected to encompass the development of the economic projects and activities, including mainly mining, industrial, infrastructural (electricity, water supply and roads) projects as well as projects in the tourism and agricultural sectors and projects for strengthening commercial activities.

This Kuwait Fund's Loan represents the 39^th Loan by the Kuwait Fund to the Arab Republic of Egypt, as the Kuwait Fund has previously made 38 Loans to the Arab Republic of Egypt, to finance projects in various sectors, with a total amount of approximately 660.58 Million Kuwaiti Dinars (equivalent to about US$2.312 Billion). The Kuwait Fund also provided the Arab Republic of Egypt with nine grants and technical assistance allocations with a total amount of about 1.97 Million Kuwaiti Dinars (equivalent to about US$6.895 Million) allocated for financing of technical and economic feasibility studies for certain projects, and financing of other activities. Kuwait Fund also administered two grants provided by the Government of the State of Kuwait to the Arab Republic of Egypt, amounting in total to about 4.8 Million Kuwaiti Dinars (equivalent to about US$16.8 Million) for the construction of some schools that were affected by the earthquake in 1992, and for the reconstruction of some villages that were damaged by floods in 1995.