Siemens to commercially operate 4,800 MW next week
Ministry of Electricity approved repayment of €100m for Siemens at end of the month
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.