Russia Lends Egypt Over $1bn to Construct Nuclear Power Plant

  • The El Dabaa Nuclear Power Plant will comprise four units, each with a capacity of 1,200 megawatts.
  • Under the agreement, Egypt will start payments on the loan provided at 3% per annum in October 2029.

Egyptian government officials have disclosed that Russia has lent Egypt over $1 billion to date of the $25 billion loan to construct the El Dabaa Nuclear Power Plant (NPP). The unnamed sources pointed out that Egypt obtained the funds over several tranches of different values. These values were provided to the construction companies operating at the plant in foreign currency.

Recall that in November 2015, Russia and Egypt signed an intergovernmental agreement to construct the country’s first nuclear power plant in Cairo at a total cost of $30 billion. Both parties also signed a deal to provide Egypt with a state export loan of $25 billion for constructing the nuclear power plant, which will cover 85 per cent of the work.

The Egyptian side will cover the remaining expenses by attracting private investors. Under the agreement, Egypt will start payments on the loan, provided at 3 per cent per annum, in October 2029. The El Dabaa Nuclear Power Plant will comprise four units, each with a capacity of 1,200 megawatts.

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