Arab Republic of Egypt
| Loan No: | 530 | Interest Rate: | 3.0 % |
| Beneficiary: | The Egyptian Gas Holding Company | Grace Period: | 5 years |
| Project Cost: | KD 174.4 million | Maturity: | 25 years |
| Amount of Loan: | KD 60.0 million | Repayment: | 41 semi-annual installments |
| Date of Board Approval: | 2010-12-09 | First Installment: | 5 years following the first disbursement |
| Date of Loan Agreement: | 2010-12-09 | Date of Loan Effectiveness: | - |
Objectives:
The project aims at contributing to the development of the southern governorates of Egypt, providing improved services to the citizens of Upper Egypt, expanding the utilization of natural gas and enhancing environmental protection efforts. The project completes the Dahshur – Assuit pipeline through the construction of a 500 km pipeline from Assuit to Aswan.
Description:
The project, which is expected to be completed early 2011, includes the following major components:
- Land Acquisition and Site Preparation: This component includes the acquisition of necessary lands and preparation of sites to construct compressor stations, measurement and service centers, laying pipelines and other needed works.
- Gas Pipelines:This includes the design, procurement and laying out of the pipelines, valves, flanges, cathodic protection and other requirements, in addition to civil works.
- Compressor Station:This includes the design and construction of all components including compressors, turbines, diesel generator and central control equipment.
- Technical Services:This includes the consultancy studies needed to implement the project.
Financing:
The Arab Fund’s loan covers about 14.3% of the total project cost. The European Investment Bank contributed to the financing of the project with a loan equivalent to about KD 51.0 million, covering about 29.2% of the total cost of the project. The Egyptian Gas Holding Company and the Egyptian Government will cover the remaining cost of the project and any additional cost that may arise.