VOL. XXXII

NO.34

29-MAY-1989

EGYPT

Soviet Loan for Sinai Power Plant

Egypt and the Soviet Union signed on 15 May a 120mn loan agreement for theconstruction at 'Uyun Musa in the Sinai Peninsula of a 600 MW gas or coal-firedpower plant. Construction work is expected to start in September. The loan isrepayable over 12 years at 3.5% interest with a 5.5-year period of grace. Theloan agreement reflects renewed growth in economic relations between the twocountries and follows reports of Soviet offers to...