Japan grants Egypt $66 million to expand electricity capacity

Published June 23rd, 2003 - 03:00 GMT

The Japanese government has granted Egypt a soft loan valued at $66 million to expand its electricity network in the north region. The loan is reimbursable at 1.8 percent annually over a 20-year period accompanied by a six-year grace period, reported AFP.

Japanese economic assistance to Egypt is usually directed at huge projects such as the Suez Canal Bridge. Earlier this month Japan agreed to extend a 4.31 billion yen ($36.4 million) grant for the construction of a water supply system in the city of Giza.

The total value of Japanese economic assistance provided to Egypt from 1977 to 2002, including grants and soft loans, is $6.7 billion. In the past, Egypt would receive loans from Japan at 0.75 percent interest with a 10-year grace period. However, this type of aid was halted in the aftermath of the 1991 Gulf war, when much of Egypt’s foreign debt was absolve by the Paris Club group of international creditors. — (menareport.com)