The plant will be the largest in the Middle East.
As per the agreement, Scatec will build and operate the facility to produce green hydrogen with quantities ranging from 50 to 100 megawatts.
Prime Minister Mostafa Madbouli announced the news Wednesday during a conference titled "Builders of Egypt."
The loan, which was signed on November 23, 2020, totals 5.5 million Kuwaiti dinars (about US$ 18,27 million).
The meeting was also attended by the ministers of electricity and planning, deputy minister of housing for infrastructure, and the CEO of Egypt Sovereign Fund.
The prime minister said that Egypt aims for cooperation with the two international organizations attracting private investments in the desalination sector.
He added that the aim of the project is to cover citizens’ needs of drinking water.
The projects are constructed within a strategy to increase Egypt's water resources, and secure water for irrigation.
President revealed that the water desalination projects cost a total of EGP435 billion.
North Sinai Governor Mohamed Shousha announced on Tuesday that construction of the largest desalination plant in Africa and the Middle East has started.
During a meeting with EBRD Vice President Alain Pilloux, in the presence of International Cooperation Minister Rania el Mashaat, the premier hailed the current cooperation with the bank.
“Salam City” eastern Port Said is one of four cities that will be constructed on the shores of North Sinai.
South Sinai contemplates introducing water treatment plants operating in the Zero Liquid Discharge (ZLD) system.
There is a need for desalination plants having a total capacity of three million cubic meters daily.
Desalination can be key to survival
President Abdel Fatah al-Sisi inaugurated on Saturday six housing projects and three water plants.
On the sidelines, Minister of Investment and International Cooperation Sahar Nasr inked an agreement with the Kuwait Fund for Arab Development Bank.