KUWAIT, March 18 (KUNA) -- A loan agreement was signed here on Sunday between the Government of Egypt and Kuwait Fund for Arab Economic Development, whereby the fund will provide a loan of KD 30 million (USD 102 million) to assist in financing of Helwan Power Station Project.

An agreement (project agreement), concerning arrangements for implementation of the venture, was also signed between KFAED and Upper Egypt Electricity Production Company, which is undertaking the Project, according to a fund statement.

The loan accord was signed on behalf of Cairo by Abdul Kareem Mahmoud Soliman, Ambassador of Egypt to Kuwait, while the project agreement was signed on behalf of Upper Egypt Electricity Production Company by Eng. Fathi Alsaid Awad Ibrahim, Chairman of the Board of Directors of the said Company. Abdulwahab Ahmed Al-Bader, the Director-General of KFAED, signed both the loan and project agreements on behalf of the fund.

The project aims at meeting increasing demand for electricity on the national grid of the Arab Republic of Egypt and improving performance of the grid through enhancing the reliability of supply of electricity by expanding generating capacity by adding a new combined power station with an installed capacity of 1950 MW in South Helwan 115 KM south of Cairo and connecting the new station with the national grid via 500 KV line. The station will utilize steam turbines fueled by natural gas with fuel oil as standby.

The project consists of construction of three steam turbine units of a capacity of 650 MW each. It includes all the necessary works for the power station, switch yard for connecting the generating units to the national grid through 500 KV quader-line with a length of about 350 KM. The venture also include the construction of cooling water intake and discharge pipe to the river Nile with a length of about 2 KM each, as well as the provision of the necessary consulting engineering services for the Project. It is expected to be completed by the end of 2016. By extending this loan, the fund will have provided 35 loans to Cairo as the fund already made 34 loans to the government there or to public entities in the Arab Republic with a total amount of K.D. 554 million, equivalent to about USD 1.9 billion, for the financing projects in various sectors.

Moreover, the Kuwaiti fund made eight technical Assistance and grants of a total amount of about K.D. 1.97 million equivalent to about USS 6.7 million allocated for various purposes including the financing of technical and economic feasibility studies for certain projects. It also administered two grants made by the Government of the State of Kuwait and amounting in total to about KD 4.8 million equivalent to about USD 16.8 million for reconstruction of schools damaged by the earthquake in 1993 and villages affected by floods in 1995.