A loan agreement between the Upper Egypt Electricity Production Company (UEEPC) and Banque Misr was signed on Sunday to fund renovations and replacements for the boiler in Assiut’s power station, which operates at a capacity of 624 MW.
Minister of Energy and Electricity Ahmed Emam, who attended the agreement signing, stated that the loan amounts to a total of EGP 285m.
This is the first loan that the ministry has received from the bank, which uses the Islamic financing system. The loan will be paid out over 80 months, starting from the date of the first withdrawal.
“The participation of the Banque Misr in financing the projects in the electricity sector affirms its confidence and belief in the sector’s success and in the projects’ management and the ability to meet the deadlines for the loan repayments,” the Ministry of Energy and Electricity said in an official statement.
Japanese company Mitsubishi, the original manufacturer of the boiler, will be responsible for renovating the power station.
Earlier in November, the ministry announced that it would implement the electricity interconnection project between Egypt and Saudi Arabia through a packages system rather than turnkey system. The project is said to enhance domestic industry and offer indirect employment opportunities in both countries.
In October, the Ministry of Electricity and Energy denied accusations of corruption leveled against it by former petroleum minister Osama Kamal during an interview with state-owned Al-Ahram on 5 October. Kamal said that an “electricity mafia” with ties to the ministry had imported 31 used power stations as new, violating public procurement processes required for such transactions.
The ministry’s spokesman, Aktham Abou El-Ela, said that all the power stations built during the previous period were compliant with the latest technical specifications and carried out through transparent international purchases, denying any claims of corruption or improper conduct.