Loan No: | 627 | Interest Rate: | 3.0 % |
Beneficiary: | West Delta Electricity Production Company | Grace Period: | 5 years |
Project Cost: | KD 361.5 million | Maturity: | 25 years |
Amount of Loan: | KD 60.0 million | Repayment: | 41 semi-annual installments |
Date of Board Approval: | 2016-04-05 | First Installment: | 5 years following the first disbursement |
Date of Loan Agreement: | 2016-04-05 | Date of Loan Effectiveness: | - |
Objectives:
The project aims at satisfying the increasing demand for power and energy, by raising the installed power generation capacity in the West Delta area by 1,800 MW. This will be accomplished by constructing a thermal power station north of the city of Damanhour, consisting of two combined cycle modules that use natural gas as their primary fuel.
Description:
The project, which is expected to be completed in the third quarter of 2019, represents the fifth and largest expansion in the Damanhour power station site, and comprises two 900 MW combined cycle modules. Each module consists of two 300 MW combustion turbine generator units, and one steam generation unit which comprises two heat recovery steam generators, a steam turbine, a power generator, and an air-cooled condenser. Hence the station’s combined cycle design will have the form 2x(2x2x1). The station will run primarily on natural gas, as a new 8 million m3/day pipeline will be built linking the site to the city of Mahmoudia. The station will be linked to the unified power grid through 500 kV power lines, by a single circuit line to the Abu Qir and Kafr El-Zayat stations, and by a double circuit line to the Abu-Elmatamir station, and on 220 kV using existing power lines, by adding two new interconnection transformers. The project consists of the following main components:
- Electromechanical, Thermal, and Electrical Machines and Equipment, and Accessories:This includes the design, manufacture, supply and installation of combustion turbine generators, steam turbine generators, heat recovery steam generators, switchyard, water treatment and pollution protection equipment, in addition to installation supervision and commissioning. It also includes the supply of transformers, medium and low voltage breakers, critical pipes, valves, pumps and drives, and all needed accessories.
- Mechanical Installations:This includes the installation of pumps, critical pipes, valves and accessories, in addition to other mechanical installations and general mechanical works.
- Electrical Installations:This includes the installation of transformers, medium and low voltage breakers, measurement and control systems, power distribution panels, and other accessories and installations, in addition to general electrical works.
- Switchyard and Control System:This includes the design, manufacture, supply and installation of 500 kV and 220 kV switchyards. It also includes the supply of measurement and control systems, and the supervision of installation and commissioning.
- Water Treatment System:This includes the design, manufacture, supply and installation of a water demineralization system, chemical dosing system, accessories, and the supervision of installation and commissioning.
- Civil Works:This includes all the project civil works, including the construction of buildings, roads and storage tanks.
- Technical Services and Insurance:This includes the technical services required for the project design, preparation of tender documents, bids analysis, assistance in procurement procedure, supervision of project execution and study of environmental impact, in addition to project insurance services.
Financing:
The Arab Fund’s loan covers about 17% of the total project cost. It is expected that the European Investment Bank will contribute to the financing of the project with a loan equivalent to about KD 180 million (about 50%), the European Bank for Reconstruction and Development with a loan equivalent to about KD 60 million (about 17%), and the African Development Bank with a loan equivalent to about KD 23 million (about 6%). The West Delta Electricity Production Company will cover the remaining cost of the project and any additional cost that may arise.