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Siemens to invest in Egypt

The company will build traditional and wind power plants

EEDCSiemens AG reached agreements with the Egyptian government to build a 4.4 gigawatt Beni Suef power plant, along with a wind power plant in the next couple of years, President and CEO of Siemens AG Joe Kaesser said in the Egypt Economic Development Conference (EEDC).

Speaking on the second day of the summit taking place in Sharm El-Sheikh, Kaesser said the agreement he sealed with President Abdel Fattah Al-Sisi earlier in the day involved the construction of a 2 gigawatt wind power plant.

Siemens to invest in Egypt (AFP Photo)
Siemens to invest in Egypt
(AFP Photo)

“The president told me we should make good financing, so we said we’ll provide a 12 year financing for these projects, and agreed on a 1.6% interest rate. I really made a very good price,” he told the attendants of the session.

He did not give a value for the deal, but said he and Al-Sisi “shook hands on it, and that was more than enough”.

According to a statement from the Ministry of Electricity, a total of four memorandums and deals were signed on Sunday  between Egyptian Minister of Electricity and Renewable Energy Mohamed Shaker, and the German Minister for Economic Affairs and Energy Sigmar Gabriel, and Germany’s Siemens representatives Lisa Davis, totalling $10bn.

The company will also construct a factory established to produce manufacturing tools for the wind plants, along with another one to manufacture power transformer stations with different voltages.

The factories are expected to employ 5,000 people. The agreement also involves the training of 500 Egyptians.

The German company has also agreed to donate €12m to the Egyptian people, upon the request of Al-Sisi.

“We have operations in this country since 1901, for over 100 years, and we have seen crisis in this country come and go,” said Kaesser, confirming that his company is committed to the Egyptian market, and is committed to “adding value to the society”.

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