TEHRAN The European Investment Bank (EIB), the European Union's financing institution, is providing euro 150 million in the form of long-term loan to the Egyptian Electricity Holding Company (EEHC) for the construction of a natural gas- fired combined cycle power plant, located in north of Cairo.

According to a EIB press release, the 650 MWE plant will use combined-cycle gas turbine technology and is expected to enter commercial operation in 2005.

The Egyptian natural gas company (GASCO), also financed by the EIB, will supply domestic natural gas.

Since 1978, the EIB has lent some euro 2 billion for investment in Egypt.