The Chinese company TBEA China awaits the response of a submitted loan offer of $500m provided by the Export-Import Bank of China to the Ministry of Electricity for use in energy projects of production, distribution, or transmission.
Commercial director of the electric power projects company Mirage Hisham Qasem said the presented offer will expire after two months. The offer includes credit facilities, a 15 year repayment plan, and a grace period of 24 to 48 months with an interest rate of 2.5%.
Mirage is cooperating with TBEA China to establish electricity and energy projects, he said. A similar offer was presented to Egyptalum to finance the establishment of a plant to produce electricity and develop their production with $200m.
Sources at the Ministry of Electricity said that the ministry received funding from Chinese banks with a 5-year grace period to establish a number of projects in the field of electricity transmission. The ministry is studying the offer of the Chinese company.
At this time, the ministry seeks to obtain funds from banking institutions to repay the value of the projects that have been contracted and that are being established. The ministry is welcoming any offers; however, there are proprieties, according to the sources.
The Ministry of Electricity signed memoranda of understanding (MoU) with a large number of Chinese companies through the Egypt Economic Development Conference (EEDC), that was held in Sharm El-Sheikh in March, with investments estimated at $20bn. The ministry seeks to activate a large number of them this year.
Ministry of Electricity first undersecretary Mohamed Al-Yamani said the projects being negotiated, along with the electricity sector’s strategies for diversifying energy in the coming period, will add new capabilities for the national network to cope with the economic growth rates and the increased demand for energy,
He explained that the Ministry of Electricity will cooperate with Chinese companies on several projects in energy transmission, production, and distribution. He pointed out that there are permanent and reciprocal visits with the Chinese side to expand the projects using the latest technology.