WASHINGTON, November 05, 2013 – Egypt and the World Bank signed today the Helwan South Power Plant Project, a gas-fired power plant that will help deliver a more reliable supply of electricity across the country.
The agreement was signed by Ziad Bahaa El-Din, Egypt’s Deputy Prime Minister and Minister of International Cooperation; and Inger Andersen, World Bank Vice President for the Middle East and North Africa region.
“The Project plays a major role in boosting confidence and enhancing much needed public investments in the sector during this critical period for Egypt,” said Bahaa El-Din. “It will also contribute to improving service delivery and promoting economic development.”
The World Bank is an important development partner in Egypt’s energy sector which provides technical assistance and project financing. The Project is part of a broader program which aims to help the country address energy policy issues and meet the growing electricity demand in a sustainable manner.
“The Project is highly relevant and timely to support the Egyptian people during this period of political and economic transition,” said Inger Andersen. “It will contribute 10 percent of the new generation capacity to be added by 2018 which is vital for Egypt’s economy.”
The project will provide short-term opportunities and long-term development needs. Around 4,000 jobs will be created, 75 percent during construction and the rest for plant operation and maintenance. In the broader context, Helwan South will help create indirect employment opportunities and boost economic growth. The additional electricity generated by Helwan South will be distributed to grid-connected consumers in all sectors including agriculture. Consumers in rural areas will also have better quality of electricity supply to support economic and social activities.
The World Bank has deepened its partnerships through this project with several regional and international players to finance Helwan South Power Project including: the Arab Fund for Economic and Social Development, Islamic Development Bank, Kuwait Fund for Arab Economic Development and OPEC Fund for International Development (OFID). Furthermore, the Deauville Partnership and the European Union provided funding for the Project’s complementary technical assistance and advisory services in priority areas which include sector governance, energy pricing and subsidies reforms as well as revamping social safety net systems, attracting private investment, and advancing energy efficiency and renewable energy. These cover a range of activities from upstream policy advice to transaction services that are designed to enhance the sustainability of the power sector and this project.