A number of local banks plan to amend their credit policies in order meet the requirements to finance Egypt’s first nuclear project in Dabaa. Hassan Abdallah, chief executive officer at the Arab African Bank, said his bank is ready to fund the project if invited by the Egyptian government.
Cairo Bank is prepared to finance the project as well, according to vice president Atef Ibrahim, but as part of a consortium of banks. Meanwhile, a ministerial committee charged with examination of funds for the Dabaa project is expected to explore three main financing options.
In the first option the Egyptian government would provide the money for the project from its own resources. The second option would feature a government partnership with the private sector. That, however, would violate a new law that mandates the nuclear project be exclusively owned and operated by the state. The third option would present funding offers from firms who are jockeying to supply components of the nuclear station.
Local banks may be able to exclusively finance part of the cost of the first station, estimated at US$4 billion–capital return periods are usually no longer than five years.
Translated from the Arabic Edition.
