NI Capital for asset management intends to complete the studies for establishing two new electricity production companies whose launch and listing on the Egyptian Exchange (EGX) is planned for October.
The studies and suggestions conducted by NI Capital—the National Investment Bank owns most of its shares—are divided into three parallel phases: assessing the current status of the assets, separating the two companies from the other production companies, and marketing the projects, said First Undersecretary for Developing Performance and Political Communication Sabah Mashaly.
The first company to be established includes the three projects implemented by German brand Siemens, while the second will manage the projects of the urgent plan.
Siemens is implementing three combined-cycle power plants, through which the gas burning exhaust is reused to produce energy. These three plants are located in Borollos, Beni Suef, and the New Administrative Capital. Work on the first phase of the projects will begin in November 2017 with a 800 MW capacity that will rise to 5,600 MW in May 2017. Later in November 2017, another 7,600 MW will be added to the network.
The completion of the first phase will be in June, which includes evaluating the current situation of the assets, while the other three phases will be completed in October.
The study will determine whether just one company will be founded to manage the three projects carried out by Siemens or whether three companies will be founded and each of them entrusted with one plant, especially as the capital of the three projects Siemens is executing in Borollos, the New Administrative Capital, and New Beni Suef amounts to €10bn.
The cost of contracting on the three plants is €6m, while the value of the land on which the projects are established in addition to its facilities amounts to €4bn.
The second company to be launched would be entrusted with the operation and maintenance of the electricity urgent plan projects with investments of $2.3bn. According to the suggestion being prepared, the purpose of the initial public offering (IPO) of the second company is to expand the range of financing electricity projects to include the middle class.
The urgent plan projects are implemented in accordance with the five-year plan from 2012 to 2017. It contributes to adding 3,632 MW capacities to the national electricity network.
General Electric, El Sewedy, and Orascom Construction Industries are carrying out the urgent plan projects. Siemens is also executing a transformer station as part of the plan.
According to Mashaly, the electricity sector is entering a phase of founding modern companies. Their ownership includes citizens, along with fully state-owned companies and private sector projects.