PIDA Investment Prospectus
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Energy Egypt, Sudan COMESA

Egypt and Sudan Electrical Grid as the First Stage of the Continental Electrical Interconnection

Current Stage: Feasibility 50%
USD 2,200.00M

Total Project Cost

USD 0.00M

Investment Required

15

Stakeholders

2

Countries

Project Overview

Description

Development of a high-voltage transmission interconnection between Egypt and Sudan as the first stage of a continental electrical interconnection that would eventually follow the path of the Cairo-Cape Town road corridor. This project represents a critical first link in the ambitious vision to connect North and Southern Africa through an integrated power transmission backbone.

Objectives

Establish a high-capacity electrical interconnection between Egypt and Sudan; enable power trade between North Africa and the Eastern Africa Power Pool; create the first segment of the envisioned Cairo-Cape Town energy corridor; enhance energy security through regional integration; reduce power generation costs through resource sharing; support economic development through reliable power supply; reduce carbon emissions through optimized use of generation resources; and demonstrate the feasibility of large-scale cross-regional power integration in Africa.

Strategic Importance

This project represents a strategically vital first step toward the vision of an integrated African power grid along the Cairo-Cape Town corridor. By connecting Egypt (linked to the Middle East and eventually Europe) with Sudan (connected to the Eastern African power system), the project creates a foundation for broader north-south energy integration across the continent. This interconnection will enable more efficient resource utilization, enhance energy security through system integration, and create economic opportunities through power trade. The project is aligned with the African Union's Agenda 2063 vision for integrated infrastructure and represents a flagship initiative for demonstrating the benefits of cross-regional energy cooperation.

Technical Specifications

Technology & Design

Transmission Corridor can be constructed with a capacity of approximately 16,000 MVA (4 VAC) from Cairo to Cape Town through Sudan, South Sudan and Ethiopia. This path is connected to the high-voltage stations in the countries where the line path passes by the establishment of voltage reduction stations (eg 1000/500 KV using transformers of 1000 MVA per transformer).

Capacity & Size

A Direct Current Transmission Line to transmit not less than 2,000 MW with 1,000 KV Voltage from Cairo (Egypt) to Khartoum and Gedaref (Sudan), as the first phase of the giant electrical interconnection grid parallel to the continental road Cairo - Cape Town which is suggested to use a mixture of alternating current (AC) and direct current (DC) current solutions according to the results of technical and economic feasibility studies.

Technical Details

To be determined in detail through the feasibility study. Preliminary design envisions a high-capacity HVDC transmission system with conversion stations at key nodes and integration with the existing transmission infrastructures in both countries.

Development, Implementation & Financial Details

Development Timeline

Phase I Components 1 and 2 (in parallel) 2022-2024 – this is expected on fast-track basis; Phase II 2025-2028

Latest Implementation Updates

UPDATED
To be determined in detail through the feasibility studies. Current framework envisions: Phase I (2022-2024) – fast-track preparatory studies; Phase II (2025-2028) – implementation
2025-05-27: Sudan began drawing additional power from Egypt amid outages – https://www.sudantribune.com/spip.php?article80609
2025-09-01 — Egypt's FY 2025/26 plan targets raising cross-border electricity export capacity to ~3.9 GW, including ~300 MW for the Egypt–Sudan link, supporting more stable supply to Sudan. [https://www.dailynewsegypt.com/2025/09/01/egypt-plans-egp-136-3bn-investment-in-electricity-renewables-for-fy-2025-26/]
2025-09-02 — Government communique reiterates the 2025/26 export target (~3,900 MW) and cites upgrades with Jordan, Libya and Sudan as key interconnection priorities. [https://www.sis.gov.eg/Story/212799/Egypt-to-double-renewable-energy-investments-in-FY-2025-2026?lang=en-us]

Financing Structure

MCDF has already allocated an amount of 2.7 million USD for project preparation studies. The main project financing will be determined based on the feasibility study outcomes, with likely involvement of multilateral development banks, regional development finance institutions, and bilateral partners.

Capital Structure

To be defined in the feasibility study. Likely to include sovereign loans, grants for strategic components, and potential private sector participation in certain elements.

Project Timeline

Start Date

January 2022

Expected Completion

December 2030

Development Timeline

Phase I Components 1 and 2 (in parallel) 2022-2024 – this is expected on fast-track basis; Phase II 2025-2028

Project Status History

Status 2020

Project Definition

Status 2022

Project Definition

Status 2024

Feasibility

Additional Project Details

Preparation Funding Gap

USD 0.00M

Construction Timeline

To be determined in the feasibility study, likely to follow a phased approach with priority sections implemented first.

Legal & Financial Advisors

To be determined through the feasibility study process

Market Analysis

Market Analysis

To be determined through the feasibility study, which will analyze current and projected demand patterns, generation mix, and cost structures in both countries to quantify the benefits of interconnection.

Market Demand

The interconnector is planned to have capacity to transmit approximately 2,000 MW with 1,000 kV voltage, serving the massive markets of Egypt and Sudan with potential to extend further south in future phases.

Key Stakeholders

Project Sponsor

Egypt, Sudan, AUDA-NEPAD, AfDB, MCDF

Key Parties

Egyptian Electricity Holding Company (EEHC), Egyptian Electricity Transmission Company (EETC), National Sudanese Electricity Company, AUDA-NEPAD, COMESA Regional Coordinator

Investors

African Development Bank, MCDF (first stage funding), potentially additional investors to be identified through the feasibility study

Contractors & Operators

To be determined through international competitive bidding following project structuring

Risk Assessment

General Risk Assessment

To be determined in the feasibility study, which will include comprehensive risk assessment and mitigation strategies.

Regulatory Risks

To be determined in the feasibility study, which will examine the regulatory frameworks in both countries and recommend harmonization measures as needed.

Impact Assessment

Environmental Impact

To be determined in the feasibility study, which will include detailed environmental impact assessment.

Social Impact

To be determined in the feasibility study, which will include detailed social impact assessment and benefit analysis.

Investment Opportunities

Private Sector Opportunities

To be determined through the feasibility study. Likely opportunities in transmission infrastructure construction, equipment supply, systems integration, and potentially in operations and maintenance.

Next Steps & Agreements

Next Steps

Complete comprehensive feasibility studies; secure financing commitments; establish implementation framework including bilateral agreements; finalize environmental and social impact assessments; develop procurement packages

Offtake Agreements

To be determined in the feasibility study, which will recommend appropriate power exchange agreements between the national utilities.

Contact Information

Arab Republic of Egypt, Government of Sudan, AUDA-NEPAD – Continental Organisation, Common Market for Eastern and Southern Africa (COMESA) - Regional Coordinator, Egyptian Electricity Holding Company (EEHC), Egyptian Electricity Transmission Company (EETC), National Sudanese Company