Rehabilitation of hydroelectric power plants II

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The Rehabilitation of Hydropower Plants II project is intended to continue the modernization of the strategically important hydropower plants in Aswan. The project includes necessary modernization measures at all three power plants, which sensibly complement the previous projects, in particular the urgent renewal of large machine transformers. The FC financing is to be carried out with a standard loan of up to 41 million euros. The borrower is the Arab Republic of Egypt, represented by the Central Bank (CBE). The program sponsors are the Egyptian Electricity Holding Company (EEHC) and its legally independent subsidiary, the Hydro Plant Generation Company (HPGC). The HPGC is the owner and operator of the two hydropower plants. Both program sponsors are long-standing and established partners of the KfW Development Bank. The aim of the project is to ensure the sustainable contribution of hydropower to a reliable, climate-friendly and cost-efficient electricity supply as well as to grid stabilization and coverage of peak loads. In addition to meeting the electricity needs of around 7.5 million Egyptians in a climate-friendly and cost-efficient manner, the three large Aswan power plants (currently 2,692 MW in total) have an important stabilizing function in the operation of the entire Egyptian electricity supply system and in the integration of fluctuating renewable energies into the interconnected grid. The project thus makes a contribution to global climate protection and sustainable electricity supply as the basis for Egypt's economic development. From the perspective of German development cooperation, the project offers the opportunity to assert itself as a reliable bilateral partner with a valuable unique selling point in a subsector that continues to be strategically important for Egypt.