JEDDAH, 18 February 2006 — The World Bank gave its approval on Thursday to set up an Egyptian power project of $260 million. The World Bank will finance the El-Tebbin power project by issuing a Fixed Spread Loan (FSL) to the Egyptian government with a 20-year maturity, including a five-year grace period. The loan will be issued by the International Bank for Reconstruction and Development (IBRD), an arm of the World Bank Group.

Through the El-Tebbin power project, the World Bank is aiming to support the Egyptian government’s effort in providing sustainable energy to the country.

The project involves the construction of a 700 MW power plant comprising of two units of 350 MW steam turbines and boilers using natural gas as fuel.

The World Bank expects the project to create 2,000 additional jobs during the construction phase and another 800 during the operation period. The World Bank hopes that the project will contribute to the development of the legal framework for the Egyptian power sector, future gas and electricity pricing, and further the implementation of already undertaken reforms.

Anna Bjerde, the project’s task team leader, said that the project would increase Egypt’s understanding on key sector issues related to energy efficiency in the power sector. She added that the project would also lead to the development of regulatory and legal frameworks needed to liberalize Egypt’s power sector.