The Egyptian Electricity Holding Company (EEHC) is intending to borrow EGP 10bn from the banking sector to finance its future expansions in the fields of transmission and distribution.
Sources at the Ministry of Electricity said that the company will communicate with both the National Bank of Egypt (NBE) and Banque Misr to arrange a syndicated loan to finance the needs of the first phase of transmission and distribution projects, estimated to cost EGP 37bn, including EGP 18bn for electricity transmission networks and EGP 19bn for distribution.
The EEHC has been working on developing and supporting the networks of transmitting and distributing electricity with the aim of reducing the loss rates and applying the system of smart networks on all electricity transmission and distribution networks.
The sources added that a meeting was held in the past days with representatives of banks to discuss financing the projects and delivering the first segment of the loan that was signed between the NBE and the EEHC, which entitles the company to receive EGP 20bn.
According to the sources, the electricity ministry will allocate the loan to pay part of the dues the company owes the Egyptian General Petroleum Corporation (EGPC), as cost of fuel consumed by electricity power plants.
The sources said that the first segment of the loan amounts to EGP 5bn and will be delivered in days.
The Ministry of Electricity decided to stop negotiations on any electricity production projects and to begin discussions and negotiations on developing the national network through transmission and distribution projects.
Sources at the electricity ministry said that the sector now has a daily surplus of 3,000 MW in energy production, and when adding the capacities of Siemens’ projects, the surplus would reach 7,000 MW.
The sources added that the electricity ministry does not need any more capacities other than the capacities Siemens will add to the national network from its projects in El-Borollos and the New Administrative Capital until 2018, and that it will focus in the next period on developing and expanding the national network of electricity to contain the capacities planned to be added in the future.
The investment cost needed for developing the electricity network accessories and equipments is EGP 19bn, to establish 500 kV transformer stations, with a capacity of 2,700 kVA and additional 870 km lines.
This also includes establishing 220 kV transformer stations with a capacity of 10,000 MVA and additional 5,500 km lines. Also needed are 66 kV transformers with a capacity of 12,000 MVA and about 5,600 km lines.
The sources added that electricity distribution companies need 79 medium-voltage distributors and 1,375 km network lines, in addition to 3,498 km cables.