Egypt seeks $100m loan from Kuwait

Egypt has requested Kuwait provide it with a loan for $100 million to fund the electricity interconnection project between Egypt and Saudi Arabia, Huffington Post reported yesterday.

The project, a statement for the Egyptian government said, fulfills part of the electricity needs in both Egypt and Saudi Arabia.

Egyptian media said that this loan is to be repaid over 25 years at an annual interest rate of two per cent, adding that the loan covers 15 per cent of the total cost of the project which is $1.6 billion of which Egypt is to pay only $600 million.

The project will see a 1,300 kilometre cable that would be extended from Badr converter in Egypt to the Saudi converter in the east of Al-Medina in Saudi Arabia in order to transfer some 3,000 megawatts.

Egypt and Saudi singed a referendum on the project in June 2014 and they agreed that it would be completed in 2018.