Egypt approves loan from Russia for nuclear power plant construction

The Egyptian Official Gazette published, on Thursday, a presidential decision approving a loan from Russia for the construction of a nuclear power plant in Egypt.

The decision, No. 515 of 2024, approves the protocol of the agreement between the governments of Egypt and Russia, which involves providing a government export loan from Russia to Egypt for the establishment of a nuclear power plant in Egypt, according to the "National Media Authority."

The Egyptian Parliament approved this decision in a session held on Jan. 27, 2024.

In November 2015, Egypt and Russia signed a cooperation agreement to build a nuclear power plant with a cost of USD 25 billion, financed through a concessional government loan from Moscow. In December 2017, Egypt and Russia signed final agreements to build the "EL Dabaa" plant.

The plant will consist of four nuclear reactors with a total production capacity of 4,800 megawatts, with each reactor generating 1,200 megawatts. The first nuclear reactor is expected to begin operations in 2028, with the other reactors being gradually brought online as part of Egypt's "electricity energy mix."

In November, Egyptian President Abdel Fattah el-Sisi emphasized the importance of accelerating the effective implementation of energy projects, considering them a cornerstone and key driver of Egypt's development.

He stressed the need to adhere to the set timeline for the implementation of the "El Dabaa" nuclear plant project, ensuring the highest efficiency in its execution, as well as providing the best training and qualifications for human resources in operation and maintenance.

Egypt's Prime Minister, Mostafa Madbouly, also committed during a government meeting in November to fulfilling Egypt's obligations related to the "Dabaa" nuclear project according to the scheduled plan, noting that the project will contribute to increasing the share of renewable energy and ensuring the stability and continuity of the electricity grid.

In early March, the Russian company "Atomstroyexport" announced the completion of a new phase of work on the "second nuclear unit" at the "El Dabaa" plant ahead of schedule.

According to the "Nuclear Power Plants Authority," the installation of the "second level of the containment vessel" for the reactor building in the "second nuclear unit" was completed, as part of the project's efforts to generate electricity.

It is worth mentioning that Egypt faced a power outage crisis during the summer months of last year, with some power plants shutting down in late July due to a shortage of fuel needed to operate them.

The "El Dabaa" project is expected to help diversify Egypt's energy sources, achieve local electricity self-sufficiency, and reduce imports of gas and energy required to operate power plants.