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Japan Bank for International Cooperation (JBIC) has signed an ODA loan agreement totalling Y5.001bn with Egyptian Electricity Holding Company (EEHC) for the Cairo-Alexandria Transmission System Project.
The proceeds will be used for civil work and procurement of materials and equipment necessary for the construction of the Sidi Krir Substation in Alexandria , northern Egypt and the 500kV transmission line stretching about 230km from the Sidi Krir substation to Cairo 500 substation, via the Nubaria Power Station located in the Delta zone.
In northern Egypt , power demand in Cairo , Alexandria and Delta zone is the highest in Egypt , and has been continuing to increase, with an annual 6-7% growth expected in the coming years.  To meet this rapid increase, the government of Egypt has already built the 1,290MW Sidi Krir Power Station in the Alexandria zone, while the 1,500MW Nubaria Power Station is under construction in the Delta zone. However, existing transmission lines are not keeping up with the sharp increase of electricity flow. Therefore, the government urgently needs to take action to ensure a stable power supply. 
 The Middle East region was seriously destabilised by the aftermath of events of September 11 and War in Iraq . Since Japan largely relies on crude oil imported from oil producing countries in this region, stability of the Middle Eastern countries, including those bordering oil producers, has important implications for Japan . The project will support economic growth and better living conditions of the people in Egypt , which plays a significant role in fostering peace and security of the Middle East .