Back to the complete issue
Wednesday, 13 December 2017

Egypt to receive first tranche of Russian loan for Dabaa in January -sources

Egypt will reportedly receive the first tranche of a loan from Russia for the construction the Dabaa nuclear power plant in January, sources at the Electricity Ministry tell Daily News Egypt. Russia is expected to cover 85% of the plant’s construction costs, but the initial amount will be used to cover the costs of nuclear reactor designs and additional studies on safety and environmental impact of the USD 30 bn facility, the agreement for which President Abdel Fattah El Sisi signed when Russian counterpart Vladimir Putin visited earlier this week.

Construction should officially start in 2020, once the Russian nuclear energy company Rosatom obtains the necessary approvals on the exact location and designs from the Egyptian Atomic Energy Authority (EAEA), which are also a prerequisites for the issuing of commercial licenses, the sources add. Electricity Minister Mohamed Shaker said on Monday that commercial operations on the first nuclear reactor, with a generation capacity of 1.2 GW, should begin in 2026.

Could red tape delay construction? The EAEA will not only have to review site plans, technical studies, and environment impact reports before giving its approval — the project will also need a sign-off from the Environment Ministry before construction can begin, sources tell Al Borsa. They did not state whether the recently-established Nuclear Power Plant Authority, which would be directly responsible for the regulating plants, will be required to weigh in as well.

While the EAEA sifts through the Dabaa paperwork, a delegation from Russia’s State Duma is expected in Cairo today to discuss security cooperation with the House Defense and National Security Committee, Ahram Gate reports. The visit comes just a few short weeks after Russia and Egypt signed an agreement allowing each to use the other’s airspaces and air bases for warplanes.

In other Russia news, a feasibility study on an Egyptian logistics and trade hub in Russia will be completed in two months, Egyptian-Russian Business Council Alaa Ezz said, according to state news agency MENA. The logistics zone, which was first announced by the Trade and Industry Ministry in 2016, will be used to market and sell Egyptian exports in Russia. "The hub will focus in its first phase on agricultural and food products," he added.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.