(DNE Photo)
Ahmad Imam, Egypt’s energy and electricity minister, stated that an additional 5,500 megawatts of energy would be privatised and produced by next May, funded by EGP 50bn of private investment. This would include an additional 2,250 megawatts in Dairut, 1,300 megawatts in a number of steam energy stations located in Qena, and 1,950 megawatts in Beni Suef. He added that the government had already provided a draft guarantee for the project, which would include investment guarantees for the station’s operating bills, which were expected to cost $2.5bn.
The ministry is expected to charge ten eligible companies with the task of administering the project, with operations in Beni Suef and Dairut to be run as a Build, Operate, Own, Transfer (also known as BOOT) scheme. This would be done with the intent of encouraging more international companies to sign up and participate in the project by April.
Operations in these stations would fall under the purview of Egypt’s 2012-2017 five-year plan to increase and promote demand for electric energy in Egypt via the private sector, in order to decrease the financial burden on the government.
Construction of these projects is expected to increase development in Upper Egypt and create job opportunities for the people of the region.
