Mediterranean Action Plan

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ENERGY AND SUSTAINABLE DEVELOPMENT IN THE MEDITERRANEAN
1.5 Financ ing and Inve s t ment Needs
Electricity sector investment needs:
The current investments in the electricity sector (2006/07) are about 1 billion US$, 40% is
financed from the National Investment Bank and other government loans in local currency;
and the rest is provided in hard currency from international fund raisers and development
banks through long term loans.
The added installed capacity planned for 2007/2012 from conventional and RE is 7800 MW.
The estimated needed investments for the generating facilities and related transmission and
distribution networks are US$ 7.3 billions.
Oil and gas sector investment needs:
The foreign investment in petroleum sector reached about 67.6% from the total direct foreign
investments in 2005/06. The implemented investments in the first six months of the year
2005/06 reached about US Dollar 1854.1 million.
The amount of targeted investments of petroleum, gas, and petroleum products in 2006/07 is
expected to US$ 2.9 billion representing 12.3% of total investments, out of which US$ 0.65
billion for crude oil, US$ 1.8 billion for natural gases and about US$ 0.45 billion for petroleum
products.
Rational use of energy (RUE) investment needs:
During the last two decades about US$ 100 millions had been invested in different programs
for RUE. Most of the funds invested were provided through grants from different donors
(mainly USAID).
Current investments for 2006/07 are very limited and represented in the budget allocated for
a technical assistance program with a cost sharing between the Egyptian Electricity Holding
Company (EEHC) and UNDP/GEF.
Data about private sector investments are not available as well as estimates for future
investment needs on the national level.
Renewable energy (RE) investment needs.
Three wind power plant projects have been recently contracted and currently underway in
Zafarana, those are in different stages of implementation as follows:
1) 80 MW installed capacity wind power plant projects in cooperation between NREA and
KFW of Germany representing phase (4) of the joint cooperation expected to start
operation in April 2008, with the following financing scheme:
A loan from KFW to NREA amounting 75.937 million Euro divided to:
50% soft loan having 0.75% interest rate and 40 years repayment period including 10
years grace period.
50% commercial loan having 5.32% interest rate 10 years repayment period including
5 years grace period.
A loan from National Investment Bank of Egypt (NIB) to NREA amounting 201.089
million Egyptian pounds (L.E.) having:
13% interest rate
10 years repayment period including 2 years grace period.
2) A 120 MW installed capacity wind power plant in cooperation between NREA and JBIC of
Japan expected to start operation in Feb. 2009 with the following financing scheme:
A soft loan from JBIC to NREA amounting 85.329 million Euro (equivalent to 13.141
billion Japanese Yen) having 0.75% interest rate 40 years repayment period including
10 years grace period.
A loan from NIB of Egypt to NREA including 16.5 million Euro and 391.49 million L.E.
with the same conditions as the project in 1.