Minister of International Cooperation Sahar Nasr signed several loan agreements with representatives of the Japanese government and President of the Japan International Cooperation Agency (JICA) Shinichi Kitaoka to facilitate initiatives in the fields of education and energy.
The loans will provide a total of $500m, according to an official statement issued by the Ministry of International Cooperation. Egyptian President Abdel Fattah Al-Sisi and Japan’s prime minister Shinzō Abe witnessed the signing of the agreements.
Al-Sisi sat down with Kitaoka early Monday and discussed the final steps to activate several loans provided to Egypt. Nasr, Minister of Foreign Affairs Sameh Shokry, and Egyptian Ambassador to Japan Ismail Khairat attended the meeting.
Nasr disclosed the conditions Sunday of the terms of three Japanese loans that will finance the construction of a passenger terminal in Borg Al-Arab Airport, increasing the efficiency of electricity distribution companies, and funding the construction of a 20MW solar power plant in Hurghada.
A total of $243.3m will be directed to finance the increased efficiency of electricity distribution companies while $91m will be provided to construct the power station in Hurghada. A loan of $152 will be provided to facilitate the work at Borg Al-Arab Airport.
Nasr stated that the loans will have interest rates that range between 0.1% and 0.3%. The loans will be repaid over a period of 40 years with an allotted grace period of 10 years.
Last week, the Ministry of Electricity and Renewable Energy was reported to be planning to sign four memoranda of understanding (MOU) and three loans with Japanese companies and financial institutions during Al-Sisi’s visit.
Japan has previously assisted Egypt in the establishment of external clinics in Abu El-Reesh Children’s hospital and the renovations of the Grand Egyptian Museum. In March 2012, the JICA signed a loan agreement with Egypt to finance the first phase of construction that will build a fourth line in the Cairo Metro.