Posted May 17, 2023 10:14
Updated May 17, 2023 10:29
Investing.com – Some sources revealed that Egypt intends to offer shares in Siemens power stations to investors in the coming period, but there are two reasons preventing the completion of the offering process.
The Egyptian government has spoken with German banks that lend to Siemens power stations in the country to obtain their approval regarding offering a share to investors, given that financing contracts require that the stations not be disposed of financially, such as their planned sale, except after the approval of those banks or the repayment of loans. This is according to the “Economy of the East”.
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This comes hours after Prime Minister Mostafa Madbouly met with a number of officials for the second time in less than 10 days, to discuss executive steps to offer the “Siemens” power station in Beni Suef to investors.
One of the officials added, “The Egyptian Electricity Holding Company has started paying loan installments since 2019, and it is regular in paying without delay. However, according to the contracts signed with financing agencies, it is not permissible to dispose of any station except after the approval of the banks, or until the completion of the payment.” the entire loan.
In July 2018, Egypt inaugurated the three giant power stations built by the German company “Siemens” in cooperation with “Orascom (EGX: OIH) Construction” and “El Sewedy Electric”, with a total capacity of 14.4 gigawatts, in the New Administrative Capital, the city of Burullus and Beni Suef.
The cost of these stations amounted to about 6 billion euros, including financing of about 4.1 billion euros from German Reconstruction Banks, Deutsche Bank and HSBC.
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The power plants implemented by Siemens operate at a capacity of 12.2 GW at present, which is about 85% of its total capacity.
Egypt first announced plans to sell one of its three power plants about four years ago, and several international investors have expressed interest in the assets, including the Blackstone Group and British investment firm Actis.
The power stations in the Administrative Capital, Burullus, and Beni Suef contribute 27% of the total electric power generated in Egypt, and the fuel savings enable the Electricity Holding Company to cover the cost of the station in 2025.
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