An Egyptian consortium composed by nine banks submitted the terms and conditions of arranging a syndicated loan to build a coal-fired power plant in Hamrawein area on the Red Sea coast, reported Amwal Al Ghad.

The loan is estimated at EGP 26.5b and will be in favor of the state-run Egyptian Electricity Holding Company (EEHC).

The consortium includes the Commercial International Bank (CIB), QNB Al-Ahli, the Arab African International Bank (AAIB), AlexBank, Ahli United Bank, Export Development Bank of Egypt (EDBE), Egyptian Gulf Bank, Societe Arab Internationale de Banque (SAIB), and Emirates NBD Egypt.

The power plant will be built in Hamarawein port, which is currently used for phosphate exports, about 150 kilometers south of Gouna. The plant is set to add 6,000MW to the country’s electricity grid at a cost of $10b approximately. The estimated timeframe of the project is of around 84 months.

The banks are expected to receive loan guarantees from the Egyptian Ministry of Finance against risks of going into payment default.