Construction of El Bagair Power Generation Station in the Republic of Sudan
A loan agreement for KD 52 Million was signed in Rabat on the 18th of April 2017 to help finance the construction of El Bagair Power Generation Station.
The loan agreement was signed by H.E. Bader Al-Deen Mahmoud Abbas, Minister of Finance and Economic Planning, on behalf of the Government of the Republic of Sudan, and by H.E. Mr. Abdlatif Yousef Al-Hamad, Director General/ Chairman of the Board of Directions, on behalf of the Arab Fund.
The project, which expected to be completed by the end of 2019, aims at reducing the existing and growing gap in satisfying the demand for electric power and energy on the Sudanese grid, through the construction of El Bagair power generating station south of Khartoum. The station will initially operate as simple cycle and use crude oil as its primary fuel, then run on natural gas following the construction of a pipeline to supply the city of Khartoum with natural gas imported via Port Sudan.
The project includes the following main components:
The loan will carry interest at 2.0% per annum and will be repayable over 30 years, including a 7 year grace period.
The Sudanese Thermal Power Generating Company (STPG) will be the beneficiary of the loan and will be responsible for implementing the project.
With the signing of the loan, the Arab Fundís total contribution to financing projects in the Republic of Sudan now amounts to KD 834 Million.