Egypt and KfW Bank Ink €26 Million Development Financing Deal for Aswan Hydropower Plants

  • Egypt’s Minister of International Cooperation, Rania Al-Mashat, and Director of the KfW Development Bank in Egypt, Dr. Bernd Siegfried, have signed a development financing agreement worth €26 million to finance phase 2 of the Rehabilitation of Hydroelectric Power Plants in the Aswan Governorate project.
  • The project, which will replace and renew the power transformers in the water station plus improve the station’s operational efficiency, will be implemented by the Ministry of Electricity and Renewable Energy within the framework of development cooperation between the governments of Egypt and Germany.
  • The three hydroelectric stations in Aswan have a combined energy generation capacity of  around 2650MW.

Al-Mashat applauded the fruitful and continuous cooperation with the KfW Development Bank and the important role it plays in supporting development projects in various sectors. The ongoing development cooperation portfolio with the bank amounts to €1.1 billion, aiming to achieve the Sustainable Development Goals (SDGs) including energy, sanitation, water, irrigation, solid waste management, technical education, and vocational training.

Egypt’s Minister of International Cooperation, Rania Al-Mashat, and Director of the KfW Development Bank in Egypt, Dr. Bernd Siegfried. Image credit: Egypt KfW

The Minister also referred to the importance of preparing for field visits to projects financed in cooperation with the KfW Development Bank, especially the solar power plant in Zaafarana, which is also supported by cooperation with Germany through €39 million, aiming to establish a power station using photovoltaic cells with 50 megawatts. This is being implemented by the New and Renewable Energy Authority (NREA) in light of the country’s commitment to transitioning towards a green economy.

For his part, the Director of the KfW Development Bank in Egypt, Dr. Bernd Siegfried, said that the three hydroelectric stations in Aswan generate combined energy of about 2,650 megawatts, benefiting 7.5 million people. He added that the project serves the irrigation systems in the governorate by regulating the flow of water and increasing protection from floods, explaining that the power transformers will be replaced to ensure maximum utilization of sustainable hydroelectric power supply in Egypt. Siegfried added that Germany, through the KfW Development Bank, is committed to supporting the rehabilitation of infrastructure, by developing the energy sector and expanding renewable energy projects, such as wind, solar, and hydropower.

Author: Bryan Groenendaal

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