The Egyptian government and the Kuwait Fund for Arab Economic Development have signed a loan and two grant agreements worth $155.5 million in total to help in financing construction of a desalination plant for East Port Said city.

One of the grants, worth $664,000, will finance a feasibility study to look at establishing solar energy plants, and the other grant, worth $15 million, will contribute to financing projects aiming at relieving socio-economic impacts in health, municipal services, water and sanitation within host communities of Syrian refugees in Egypt.

The desalination plant will serve the new Eastern Port Said city, which is currently being constructed, and will have a 150,000m³/day capacity. The plant will use reverse osmosis technology, and the intake and used water disposal system will be designed for a 250,000m³/day capacity to take account of potential future expansion.

The project includes all civil works for the plant, construction of the 700km long transmission and distribution network, as well as storage plants, control and monitoring equipment, mechanical and electrical, and other parts. It is forecast to be complete by the end of 2019, and the total cost is estimated at around $311 million.

The loan has a 25-year term including a five-year grace period.