The Egyptian Electricity Holding Company (EEHC) has decided to establish three new companies for the Siemens power plants in Beni Suef, Borollos, and the New Administrative Capital at the end of December 2018, after beginning commercial operation for all units and linking them to the electricity grid.
Sources at the EEHC said that the plan to establish a company for the urgent plan projects has been excluded, where the projects were distributed amongst the existing production companies, but at the same time, three companies for Siemens plants will be established and supervised by the EEHC.
The sources pointed out that no decisions or action will be taken for the three companies before the operation of all units and completion of the agreement.
The sources said that the heads of the three companies will be selected from within the electricity sector, and the companies will be offered for public subscription after the completion of their establishment and the appointment of boards of directors during the first quarter of 2019.
The General Assembly of the EEHC has previously agreed to establish four companies with a capital of EGP 180m. The capital of each company was set to be decided based on the book value, which includes the assets of each company, including as well the cost of establishment, land value, and preparation of sites.
According to sources, each of Siemens’ three companies will have a capital of EGP 40bn.
The EEHC had signed contracts with Siemens last year to implement the three combined-cycle power plants with a total capacity of 14,400MW.
Siemens is implementing the three projects through the EBC+ Finance scheme, while the EEHC will repay the loan over several years. Three German banks, KfW Development Bank, HSBC, and Deutsche Bank, secured funding for Siemens’ projects in Egypt, amounting to €4.1bn of a total contract value of €6bn. Arab banks secured the remaining funding in Egyptian pounds to pay for the Egyptian companies participating in constructions, including Elsewedy Electric and Orascom.