The Egyptian Electricity Holding Company (EEHC) signed on Thursday a contract for the operation and maintenance of power stations of the New Administrative Capital, Burullus, and Beni Suef worth EGP 6.3bn.
Sources in the Ministry of Electricity told Daily News Egypt that the financial value of contracting for the operation and maintenance of power stations of the three plants include part of EGP 2.6bn to be paid in pounds and €176m (EGP 3.7bn) to be paid in euros.
Siemens gets its first dues after four years of its eight-year contract, according to the agreement with the EEHC.
The sources added that intensive negotiations have been conducted over the past three weeks to agree on the general conditions and specifications for the operation and maintenance of the stations, and to reduce inflation rates in the coming years.
The sources also explained that Siemens will operate and maintain all the components of the three plants, which is a different contract from the turbine maintenance contract worth €1.5bn.
They added that a company will be inaugurated to manage the three power plants. The head of the company and its board will be selected in the coming period. The company will also be enlisted on the Egyptian Exchange.
The Ministry of Electricity has contracted Siemens to establish three power plants with a total capacity of 14,400 MW through an EBC + Finance system. Siemens handles the design, construction, and financing, while the EEHC repays the loan over several years.
Three German banks, the 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 pay for the Egyptian companies participating in constructions, including Elsewedy Electric and Orascom.