Denmark, HSBC offer funding energy project

Cabinet to examine proposal next Wednesday

The Danish government and HSBC are offering to fund the construction of new electric generators at the power plants in Zouk and Jieh. Danish engineering and contracting company BWSC (Burmeister & Wain Scandinavian Contractor) won a tender for the project in September. The project’s cost is estimated at around $350 million.

“Denmark's official export credit agency (EKF) and HSBC proposed granting the government a soft loan to cover 85 percent of the project’s cost,” a source at the Danish embassy said. The loan has a maturity of five years at an interest of around 4.6 percent, with a six-month grace period from the date of the initiation of works.

“The proposal was submitted to the Prime Minister and the Minister of Finance, and the Cabinet is expected to discuss it during its session next Wednesday (January 16),” said the source.

The project involves building reciprocating engines to boost power output at the Jieh and Zouk production plants by 260 MW. The project is expected to take around 18 months to be completed.