Egypt, Italy may sign $3.5bln power link deal in June

Egypt and Italy could sign an agreement to link their power grids in June following several rounds of talks on the $3.5 billion project, a newspaper said on Friday. 

The two countries are still discussing the project which involves installation of 2,200 kilometres of power lines through a third country, the Arabic language daily Addustoor said, quoting a source at the Egypt’s  electricity and renewable energy ministry. 

Italy has secured funds from local and European sources for its part of the project, the source said, adding that it will be one of the largest interconnection projects in Africa. 

“The project is expected to cost nearly $3.5 billion...once an agreement is reached, the two countries will sign memoranda of understanding in June,” the source said, adding that the project has a supply capacity of 3,000 MW. 

Egypt has signed several agreements to build renewable energy plants while it also has electricity grid connections with Jordan and Sudan. It has also signed a MoU with Greece and Cyprus for similar projects.