The provision of a sovereign loan of up to EUR 200 million to the Arab Republic of Egypt, to be onlent to the state-owned Egyptian Electricity Transmission Company (EETC). The proceeds of the loan will be used to finance the construction and upgrade of five high voltage substations in Upper
Egypt, West Delta, Cairo, and Alexandria in Egypt.
The proceeds of the loan will be used to finance part of EETC's grid investment plan to help optimise power flows, reduce transmission losses, and connect new renewable energy plants and state-of-theart generation units. The Project consists of the following substations: (1) El Sadat 500 kV substation in Menofia Governorate, (2) New Atfih 500 kV substation in south Cairo, (3) West Mallawy 500 kV substation in Upper Egypt, (4) Shebeen El Koum 500 kV substation in Menofia Governorate, and (5) Abo Talaat 220 kV substation in Alexandria Governorate.
Well-governed: As part of its involvement in the financing of EETC's investment programme, the Bank will provide technical assistance to both EETC and the Egyptian Electric Utility and Consumer Protection Regulatory Agency (EgyptERA) to help them comply with the requirements of Egypt's
Electricity Law and facilitate transition to a liberalised and efficient market structure.
Green: The Project is expected to facilitate integration of a minimum 450 MW of new renewable capacity into the Egyptian electricity system as well as reducing transmission losses, thereby resulting in combined emissions savings in excess of 2 million tonnes of CO2 per annum.
EETC is the transmission system operator and the sole buyer of all electricity generated in Egypt. It is 100% owned subsidiary of the Egyptian Electricity Holding Company (EEHC), the state-owned utility 100% owned by the Ministry of Electricity and Renewable Energy (MoERE). In accordance with the 2015 Electricity Law, EETC is now in the process of being un undled into separate ownership.
EBRD Finance Summary
Sovereign loan of up to EUR 200 million
Total Project Cost
Environmental and Social Summary
Categorised B (ESP 2014). The Environmental and Social (E&S) risks associated with the construction of substations are typically site specific and readily identifiable and can be managed through the implementation of targeted mitigation measures.
The Environmental and Social Due Diligence (ESDD) for this Project is currently ongoing and is being undertaken by an independent consultant to cover both the corporate aspects of EETC in terms of E&S resources, management procedures as well as those related to the construction and operation of the 5 substations. The scope of the ESDD included the review of available documentation, meetings with the relevant personnel at EETC, and site visits to the Sadat, New Atfih and West Mallawy substations and the tentative routes for the corresponding High-Voltage Over Head Transmission Lines (OHTL).
Although the OHTLs themselves are not part of the Bank's financing, the ESDD includes a risk assessment of these lines to identify any associated key risks or red flags that need to be addressed by EETC. The ESDD has confirmed that the Project and associated facilities are not located in, or close to, any cultural heritage sites or environmentally or socially sensitive areas, and will not result in any involuntary resettlement or displacement. Key risks are associated with, inter alia: contractor management; lack of resources and formalised E&S procedures and systems; occupational health and safety risks in particular in relation to working at heights, electrocution and confined spaces; and appropriate stakeholder engagement. Based on the ESDD an Environmental and Social Action Plan (ESAP) will be developed and agreed with EETC to take account of the issues identified and ensure the Project is structured in line with EBRD's Performance Requirements. The ESAP will be agreed with EETC prior to the Project being presented to the Board for approval.
This PSD will be updated once ESDD is completed, and a Non-Technical Summary, and a Stakeholder Engagement Plan will be disclosed both in English and Arabic on the website.
Technical Cooperation funding to assess the technical viability of the Project was provided by Germany (EUR 71,960) under the Sustainable Development of the Power Sector Framework and Shareholders Special Fund SSF (EUR 20,100) under the Green Economy Transition Project
Preparation and Implementation Framework.
Company Contact Information
Dr Amr El Baradie
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