German credit insurance agency Euler Hermes has agreed to underwrite a €4.1b loan to Egypt from a consortium of German banks in support of Siemens electricity production efforts in the country, Egypt Independent reports.
German firm Siemens is leading the €8b construction of the electricity production facilities, which will utilize gas and wind power. The deal, struck in June, was the largest ever for Siemens, according to a press release. The facilities built will provide a capacity of 16.4 gigawatts, boosting Egyptian power generation by 50 percent. Six hundred wind turbines and a blade manufacturing facility will be built, in addition to three natural gas-fired plants. The project will provide jobs for up to 1000 people and will primarily be based in Beni Suef, Borolos and the new administrative capital.
Joe Kaeser, President and CEO of Siemens, said: “With these unprecedented contracts, Siemens and its partners are supporting Egypt’s economic development by using highly efficient natural gas and renewable technologies to create an affordable, reliable and sustainable energy mix for the country’s future.”
The banks offering the loans consist of HSBC Germany, Deutsche Bank and the German Bank of Reconstruction (KFW). The loan will be repaid over the course of 12 years with a 3 year grace-period. The interest rate for the loan has not been made public.