OFID signs loan agreement with Egypt to help boost energy sector

OFID Director-General Mr Suleiman J. Al-Herbish (seated, right) signs the loan agreement with HE Dr Ziad Bahaa El-Din, Deputy Prime Minister and Minister of International Cooperation. Also in attendance were interim Egyptian Prime Minister, HE Hazem el-Beblawi (back, left), the Minister of Electricity and Energy, HE Ahmed Mostafa Emam Shaaban (back, right).

On September 29, 2013, Mr Suleiman J. Al-Herbish, Director-General of the OPEC Fund for International Development (OFID), signed a US$70 million public sector loan agreement for the South Helwan Power Plant Project. HE Dr Ziad Bahaa El-Din, Deputy Prime Minister and Minister of International Cooperation, co-signed the agreement. The loan signature ceremony took place in Cairo, Egypt, in the presence of the interim Egyptian Prime Minister, HE Hazem el-Beblawi, the Minister of Electricity and Energy, HE Ahmed Mostafa Emam Shaaban, and other high ranking officials.

Under the project, the South Helwan Power Plant will be expanded, which will, in turn, benefit households, agricultural workers, businesses and industries, as well as help create jobs and boost the economy.

Accompanying the Director-General was Mr Fuad Albassam, ADG, Public Sector Operations, and Mr Khaled Al-Zayer, Senior Public Sector Operations Officer.

OFID's support to Egypt dates back to the institution's inception in 1976. In addition to the loan agreement signed in Cairo, other approvals aimed at helping strengthen Egypt's energy sector total over US$200 million and helped fund the construction, expansion and upgrading of power plants situated across the country.

Other OFID-supported public sector projects covered the agriculture, education, health and national development bank sectors, as well as those of a multi-sectoral nature. Balance of payments support has also been provided. Since 2001, OFID has approved 14 private sector and trade finance operations totaling over US$354 million in support of Egypt's financial, health, agriculture, industrial and energy sectors. The majority, US$250 million, financed energy projects; mainly to import crude oil and refined petroleum products.

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