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Electricity Ministry to repay dues of companies that withdrew from FIT projects by end of month - Daily News Egypt

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Electricity Ministry to repay dues of companies that withdrew from FIT projects by end of month

Purchase agreements to be signed with those who were tied by first-stage regulations within 20 days


The Ministry of Electricity will repay dues to companies that declared they will not complete the feed-in tariff (FIT) projects by the end of the month, according to sources at the ministry.

Three companies, that submitted formal letters of withdrawal from FIT projects, were told to send other letters to illustrate all dues paid to the Egyptian Electricity Transmission Company (EETC) and to the New and Renewable Energy Authority (NREA) for repayment by the end of October, the sources added.

Enel Green Power, Abdul Latif Jameel, and Cairo Solar companies presented their documentation to the minister. However, he has not signed these yet—either for approval or rejection, the sources said.

Minister of Electricity Mohamed Shaker said that companies not wishing to complete these projects will be refunded all the money they paid without deductions. He made this announcement last month at a conference for the second stage of the FIT projects.

The three companies’ representatives are waiting to receive their paid amounts, as well as letters of guarantee from banks regarding land use and cost-sharing agreements.

According to the financial statements of a number of companies, EGP 20m were paid in two instalments to the EETC, and EGP 9m to the NREA, as well as letters of guarantee.

Five months ago, Abdul Latif Jameel announced that it would discontinue implementing the solar power FIT projects. The company had intended to implement a solar power plant in Banban, Aswan with a capacity of 50 MW and investments of $100m.

Enel Green Power and Cairo Solar also announced two months ago that they would not complete the FIT projects, as they object to the bureaucracy and the lack of transparency and clarity.

Gamal Abdel Rahim, head of EETC, said that the company signed an agreement to purchase energy from companies that have met the terms of the first phase of the feed-in tariff projects within 20 days.

He added that the committee formed to oversee the FIT projects examines the applications submitted by companies. After assuring its commitment to the terms and conditions and completing the financial closing of the projects, the company will start signing purchase agreements with them.

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https://dailyfeed.dailynewsegypt.com/2016/10/05/555737/
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