Egypt's sovereign wealth fund has temporarily postponed the sale of stakes it owns in Siemens power plants despite attractive purchase offers made to it, due to financial and technical matters.
In July 2018, Egypt inaugurated three power plants built by the German company Siemens in cooperation with Orascom Construction and Elsewedy Electric
These are 3 huge power plants, at a cost of $ 6 billion, with a capacity of 14.4 gigawatts in the Administrative Capital, the city of Burlus and Beni Suef.
The finances are that the loans for the stations are not yet finished, and the technical reasons are that the plants are not yet fully operational."
The power plants currently implemented by Siemens are operating at a capacity of 12.2,000 MW, representing about 85% of their total capacity of 14.4,000 MW.
"The fund has not closed the door to companies, investors and investment funds wishing to acquire part of the shares of power plants, but due to some technical and financial matters the decision will be postponed temporarily."
The Electricity Holding Company is still repaying the loans it has obtained from banking institutions to finance the project, and among the controls in the contracts, it is possible to dispose of the stations but it is necessary to repay the full value of the loan.
The plants cost around €6 billion, including €4.1 billion in funding from German Construction, Deutsche Bank and HSBC.
Power plants in the Administrative Capital, Burullus and Beni Suef contribute 27% of the total electricity generated in Egypt, and the fuel savings achieved enable the Electricity Holding Company to reach the cost of the plant in 2025.
