Arab Republic of Egypt

Establishment of a Water System for Bahr El Bakar Drain
Loan No: 657 Interest Rate: 2.5 %
Beneficiary: Ministry of Housing, Facilities and Urban Communities, and Ministry of Water Resources and Irrigation Grace Period: 6 years
Project Cost: KD 835.0 million Maturity: 30 years
Amount of Loan: KD 70.0 million Repayment: 49 semi-annual installments
Date of Board Approval: 2018-05-05 First Installment: 6 years following the first disbursement
Date of Loan Agreement: 2018-08-08 Date of Loan Effectiveness: -

Objectives:

The project represents one of the main components of the Sinai Peninsula Development Program, which aims at improving conditions and achieving political and social stability in this area. The project aims at contributing to the development of the Sinai Peninsula through the provision of 5 million m3daily of treated water for the irrigation of about 330 thousand feddans to produce the appropriate agricultural crops, and construct agro-industrial facilities and barns to raise cattle. This is to be achieved by transporting polluted drainage water from Bahr El Bakar in the west Suez Canal to the east of the canal, and treating it for irrigation purposes.

Description:

The project, which is expected to be completed by the end of 2022, comprises the following main components:

  1. Construction of the Main Facilities:
    1. Treatment Plant:This includes the construction of a treatment plant with a capacity of about 5 million m3daily, consisting of a lift station at the water’s intake, and the installation of course and fine screens, coagulation and flocculation tanks, and construction of sand filters and disinfection facilities for the treated water. This component also includes the construction of sludge drying facilities, the construction of administration buildings, fencing and beautification of the site, earthworks and paving of roads, in addition to all the other necessary civil and electromechanical works.
    2. Water Carrier:This includes the construction of a barrier wall on the Bahr El Bakar water drain, and the construction of a channel, with a length of about 19 km and a width of about 100 m, to transport the water to the main lift station, and then to the treatment plant by a channel with a length of about 1 km. This component includes the construction of bridges, tunnels and all the other necessary civil and electromechanical works.
    3. Pumping Stations:This includes the construction of a lift station with a capacity of about 170 thousand m3daily at the water intake on the water drain of Shadir Azam, and the construction of a main lift station to transport water from the west to the east of the Suez Canal with a capacity of about 5 million m3daily. This component includes the construction of all the other necessary civil and electromechanical works.
  2. Consultancy Services:This includes the preparation of the necessary studies, design and bid documents, supervision of works, and follow up during the maintenance period.
  3. Land Acquisition:This includes the acquisition of land and the necessary compensations needed for the construction of the project and its operation.
  4. Set Up of Farms, Cattle Raising Barns and Agro-industrial Production Facilities:This includes the reclamation of land, setting up of farms, cattle raising barns and construction of agro-industrial facilities.

Financing:

The Arab Fund’s loan covers about 8% of the total project cost. The Kuwait Fund for Arab Economic Development contributes to the financing of the project with two loans for a total of KD 75 million (about 9%). It is expected that the private sector will contribute to the financing of the project with about KD 570 million (about 68%). The Egyptian Government will cover the remaining cost of the project and any additional cost that may arise.