Arab Republic of Egypt

Cairo West Power Generating Station 650 MW
Loan No: 615 Interest Rate: 3.0 %
Beneficiary: Cairo Electricity Production Company Grace Period: 6 years
Project Cost: KD 218.3 million Maturity: 25 years
Amount of Loan: KD 60.0 million Repayment: 39 semi-annual installments
Date of Board Approval: 2015-04-07 First Installment: 6 years following the first disbursement
Date of Loan Agreement: 2015-04-07 Date of Loan Effectiveness: 2015-09-30

Objectives:

The project aims at satisfying the increasing demand for electric power and energy in the Arab Republic of Egypt, by raising the installed power generation capacity in the Greater Cairo by 650 MW. This will be accomplished by adding a steam power generating unit that runs on natural gas as the primary fuel, to the existing Cairo West power station.

Description:

The project, which is expected to be completed in the first half of 2019, comprises a 650 MW sub-critical steam generating unit consisting of a boiler, a turbine, a power generator and a condenser, in addition to transformers, circuit breakers, water treatment and environmental pollution monitoring systems, emissions control systems if required, measurement and control systems, and mechanical, electrical and civil works, spare parts, accessories, and consultancy services and insurance. The project consists of the following main components:

  1. Boiler and Accessories, Pumps and Water Treatment: This includes the design, supply and installation of a boiler and its accessories, in addition to the supply, installation and technical services of the main water feed pumps, condensate pumps, circulating cooling water pumps and others. It also includes design, manufacturing and supply of primary water treatment, and demineralization and chemical dosing systems, and accessories.
  2. Steam Turbine, Power Generator, Condenser and Accessories: This includes the design, manufacture, supply, installation, and supervision of commissioning of a steam turbine, and supply and installation of a hydrogen cooled power generator and related mechanical and electric works, and supply and installation of a condenser and accessories.
  3. Transformers and Circuit Breakers: This includes the design and supply of power, interconnection, and auxiliary transformers. This also includes the supply and installation of the 500 kV and 220 kV circuit breakers, and medium voltage breakers, in addition to supervision of commissioning.
  4. Mechanical and Electrical Works, Heaters, Pipes and Control System: This includes regular mechanical works, and the installation of pumps, heat exchangers and pipes. The electrical works include the installation of transformers, distribution boards and cables. It also includes the supply of feed water heaters, critical piping and pumps, a measurement and control system, and supervision of commissioning.
  5. Civil Works: This includes all civil works needed for the project such as foundations for equipment, structures, buildings and roads.
  6. Tanks and Environmental Pollution Monitoring Equipment: This includes the construction of tanks for heavy fuel oil, light gas oil, treated water and condensate. It also includes the supply and installation of environmental pollution equipment.
  7. Consultancy Services and Insurance: This includes technical and consultancy services required for the project design and supervision, preparation of tender documents, bids’ analysis, assistance in contract negotiation and supervisory services, the environmental impact study, in addition to project insurance.

Financing:

The Arab Fund’s loan covers about 27% of the total project cost. It is expected that the Kuwait Fund for Arab Economic Development will contribute to the financing of the project with a loan of KD 30 million (about 14%), the Saudi Fund for Development with a loan equivalent to about KD 31 million (about 14%), and the Islamic Development Bank with a loan equivalent to about KD 68 million (about 31%). The Egyptian Government will cover the remaining cost of the project and any additional cost that may arise.