Work is being finalised on the procedures of obtaining a $3bn loan from the Islamic Development Bank (IDB), allocated to the Egyptian General Petroleum Corporation (EGPC).
The procedures for the loan are set to be completed by June, said Chairman of EGPC, Tarek El-Mulla, adding that the IDB loan will be issued due to a law approved by the President, as it is a direct loan from the bank to the state.
El-Mulla mentioned that the loan will be used in funding the imported shipments of oil products needed for the country during the next period.
Minister of International Cooperation Naglaa Al-Ahwany signed an agreement with Director of IDB Ahmed Mohamed Ali during the Egyptian Economic Development Conference (EEDC), held in Sharm El-Sheikh in March.
The agreement includes establishing a new terminal with a cost of $457m, as well as the electricity interconnection project between Egypt and Saudi Arabia worth $250m. These will transfer 3,000 watts of electricity on a daily basis. In addition, the agreement includes constructing refinery laboratories which transform oil into diesel in Assiut at $198m, a $3bn loan, and a project of Enma Company for Retail Leasing with capital estimated at $21m.
El-Mulla said that $85bn are requested to be allocated for fuel subsidies in the state budget for the next fiscal year (FY) 2015/2016, and the subsidy bill was determined as per the Brent price, which is at $75 per barrel.