Egypt and Cyprus have reached an agreement with an unnamed European company to provide $1.5 billion to help finance the electricity transmission project between the two countries, informed sources told Al Mal.

The sources told the financial newspaper that an agreement for the $4 billion, 1,707-km EuroAfrica Interconnector project will be signed in 2019 in the presence of the Egyptian, Cypriot and Greek presidents.

“The European company will finance the project in return for fees paid jointly by Egypt and Greece against transmitting electricity,” Al Mal quotes the sources as saying.

Egypt’s Burullus gas plant and Cyprus will be linked with a 498-km, 2,000 megawatt subsea cable which will take around 36 months to install. A 879-km cable will then be laid between Cyprus and the Greek island of Crete. Both phases are slated for completion by 2021.

The first phase of the project – linking Crete and mainland Greece – is projected to be completed in 2020.

Egyptian electricity minister, Mohamed Shaker, revealed in June that EuroAfrica’s chief executive had presented a feasibility study to government officials.