Siemens to com­mer­cially op­er­ate 4,800 MW next week

Min­istry of Elec­tric­ity ap­proved re­pay­ment of €100m for Siemens at end of the month

The Daily News Egypt - - Front Page - By Mo­hamed Farag

The Ger­man com­pany Siemens is set to be­gin com­mer­cial op­er­a­tion of 12 production units in Borol­los, Beni Suef, and the New Ad­min­is­tra­tive Cap­i­tal power plants next week to out­put 4,800 MW.

Sources at the Min­istry of Elec­tric­ity said that the pi­lot op­er­a­tion of six units of the Beni Suef plant, to­tal­ing 2,400 MW, next to six units in the New Ad­min­is­tra­tive Cap­i­tal and Borol­los with out­put amount­ing to 2,400 MW will com­mence.

Sources told Daily News Egypt that the agree­ment with the Egyp­tian Elec­tric­ity Hold­ing Com­pany (EEHC) stip­u­lates com­plet­ing the com­mer­cial op­er­a­tion for 12 units on 31 May, but Siemens of­fi­cial said they com­pleted the works sooner than the agreed date.

Up­per Egypt Elec­tric­ity Hold­ing Com­pany formed a tech­ni­cal com­mit­tee that will run the Siemens plants. This com­mit­tee also in­cludes heads of production com­pa­nies in Up­per Egypt, Cairo, and the Cen­tral Delta, as well as mem­bers from all sides to save the money re­quested by Siemens.The min­istry is set to re­pay the fi­nanc­ing later, ac­cord­ing to the con­tracts with the fi­nanc­ing banks, which grant a grace pe­riod of up to three years.

Ibrahim Al-Sha­hat, head of the Up­per Egypt Elec­tric­ity Production Com­pany, said that five production units in Beni Suef power plants have en­tered com­mer­cial op­er­a­tion and will link the out­put to the na­tional grid.The Egyp­tian Elec­tric Util­ity & Con­sumer Pro­tec­tion Reg­u­la­tory Agency will man­age the ca­pac­i­ties to run at full ca­pac­ity or at part of it.

Al-Sha­hat added that all bills sub­mit­ted by Siemens to of­fi­cials of the EEHC have been ap­proved, not­ing that the min­istry will not de­lay re­pay­ment of dues so that the com­pany can com­plete con­struc­tions of the three plants to fin­ish within the timetable.

EEHC signed con­tracts with Siemens last year to im­ple­ment three com­bined-cy­cle power plants with a to­tal ca­pac­ity of 14,400 MW.The three power plants are lo­cated in Borol­los, Beni Suef, and the New Ad­min­is­tra­tive Cap­i­tal. Siemens is im­ple­ment­ing the three projects on an 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.

Ac­cord­ing to the sources, the in­voices sub­mit­ted by Siemens will be ap­proved with a to­tal value of €100m by the end of the month.

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