Electricity Ministry operates 6,400MW from Siemens power plants

Mohamed Farag
3 Min Read

Siemens delivered 16 gas electricity production units to the Ministry of Electricity in the New Administrative Capital, Beni Suef and Brullus stations with a total of 6,400MW.

Sherif Qutb, deputy executive director of projects at Siemens, said that the ministry has received 16 production units that are subject to commercial operation, where the Egyptian Electricity Holding Company (EEHC) will determine the capacities that need to be linked to the grid, the operation hours, and the required fuel.

Siemens will deliver eight gas production units of the three plants by May, with power loads amounting to 3,200MW, to total 9,600 MW so far.

The completion rate of the three projects reached 92%, and the German company started operating tests for some of the remaining gas production units.

Qutb explained that Siemens has started working on the 12 steam production units with a capacity of 4,800MW. According to the agreement with the Ministry of Electricity, the units will be delivered between May and December 2018.

EEHC has formed a committee for technical evaluation, and for running the Siemens power plants, which includes heads of the energy production companies in Upper Egypt, Cairo, and the Delta.

An official at EEHC said that Siemens provided bills, and that they were approved and disbursed. He noted that EEHC will not postpone payments so that the company can complete the establishment of the three plants in time.

He explained that all capacities are added to the network after its commercial operation and that the National Energy Control Centre (NECC) manages the capacities.

The Ministry of Electricity has contracted Siemens to establish three power plants with a total capacity of 14,400MW through an EBC + Finance system. Siemens handles design, construction, and financing, while EEHC repays 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 provide payments to the Egyptian companies participating in construction, including Elsewedy Electric and Orascom.

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