The Egyptian Electricity Holding Company (EEHC) has concluded negotiations with Germany’s Siemens to operate and maintain the new power plants in the New Administrative Capital, Borollos, and Beni Suef. The company will sign the operation and maintenance contracts by the end of the month.
Sources at the EEHC told Daily News Egypt that intensive negotiations were conducted over the past week with the German company after the EEHC reduced the financial offer for the project.
The sources added that the Egyptian financial offer exceeded €120m, but they refused to reveal the real value of the contract, noting that the payment period of the contract reached eight years.
Daily News Egypt released exclusive information about that agreement on 7 June, as Siemens will receive its initial dues after four years and will be paid in local and foreign currencies.
The sources pointed out that Siemens will operate and maintain all components of the New Administrative Capital, Borollos, and Beni Suef power plants. This agreement has nothing to do with the other contract worth €1.5bn to maintain steam units in the three power plants.
A senior official at the Ministry of Electricity revealed that the opening of the three power plants was delayed for several times because the ministry wanted to conclude the operation and maintenance contracts before the opening.
The official said that the new Siemens subsidiary company in charge of the three power plants will select a new chairperson and form a council board of the company during the coming period, noting that the company will be offered on the stock market.
The Ministry of Electricity has contracted Siemens to establish three power plants with a total capacity of 14,400 MW through an EBC + Finance system. Siemens handles design, construction, and financing, while EEHC repays 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 construction, including Elsewedy Electric and Orascom.