The Ministry of Electricity announced it will establish one company to oversee the power plants in Beni Suef, Borollos and the New Administrative Capital instead of the three companies it previously planned to launch.
The company’s capital will be based on book value, which includes assets and properties, including the cost of construction, land, and site processing; the company will operate under the umbrella of the Egyptian Electricity Holding Company (EEHC).
Sources pointed out that the establishment of three companies for the three stations would be contrary to the current production companies, especially since each station is within the scope of a production company that already exists. In addition, establishing one company comprising the three projects is the best option to save costs and prevent problems from arising.
The cost of contracting the three power plants amounted to €6bn, in addition to the cost of land, which boosts the total value to €8bn.
The sources pointed out that the new company will manage the plants’ 14,400 MW capacity and accounts for 40% of total power on the grid. The company will also coordinate with a private company to operate and maintain the three plants.
The sources revealed that the EEHC prepared a list of five people to chair the company and will form a board of directors. The selection will take place within weeks.
The new company will be publicly offered on the Egyptian Exchange (EGX) by 2022, after lifting all energy subsidies.
According to the Ministry of Electricity’s strategy, subsidies will be lifted completely by 2021/2022.