Russia to lend Egypt $25 billion for nuclear power plant

CAIRO: Russia will loan Egypt $25 billion to finance building and operating a nuclear power plant in Egypt, the official gazette said on Thursday.

Egypt and Russia signed an agreement on Nov.

19 for Russia to build Egypt´s first nuclear power plant in Egypt and to extend Egypt a loan to cover the cost of construction.

It was not clear at the time what the deal was worth, but Egypt´s president Abdel Fattah al-Sisi said the loan would be paid off over 35 years.  Egypt will pay an interest rate of 3 percent annually, according to the country´s official gazette.

Instalment payments will begin on Oct.

15, 2029."The loan will be used by the Egyptian side for a period of 13 years between 2016-2028 the Egyptian side will repay loan amounts used over 22 years in 43 instalments," the gazette said.

The loan will finance 85 percent of the value of each contract for the work, services and equipment shipping, the gazette said. Egypt will finance the remaining 15 percent. The plant will be built in Dabaa, a site in the north of the country that Egypt has been considering for a nuclear power plant on and off since the 1980s.