TAQA Arabia, a subsidiary of Qalaa Holdings in the energy sector, is considering establishing a new 50MW-capacity solar power plant, in addition to the other 50MW-capacity solar power plant the company seeks to implement in Aswan at a cost of $75m. TAQA Arabia for Solar Energy signed a contract with the Egyptian Electricity Transmission company and the New and Renewable Energy Authority (NREA) to split the EGP 40m-project to connect solar energy facilities to the national electricity grid, the company announced in November 2015. Qalaa noted in an investment report issued last week that TAQAA Arabia plans to establish two solar power plants with 50 MW capacities. The holding company also said that TAQAA Arabia is expanding to establish auto-motive fuel and natural gas stations. The company established four new stations in the first quarter of 2016. The total number of stations has now reached 45 stations. The energy sector is one of the most important operating segments of Qalaa Holdings. This sector's revenues registered EGP 593.1m in Q1 2016, with an average annual growth of 14%. Qalaa Holdings' report noted that the Egyptian Refining Company (ERC) has received loans worth $1.68bn, as of the end of March 2016, to build a developed refinery in Greater Cairo. It came in the framework of an agreed-upon package of loans worth $2.5bn directed towards implementing the project. ERC also received all necessary equipment for the project and transferred it to the project site. As of the end of April 2016, the company has finished the installation of 796 out of 1,144 units. The investment cost of the project is $3.7bn, and it is scheduled to start producing refined products in 2017 with a capacity exceeding 4m tonnes per year, including 2.3m tonnes of Euro V diesel. The capital profits of Qalaa Holdings reached EGP 19.5m. These profits came as a result of the sale of Misr Glass Manufacturing (MGM), Tanmeyah Microfinance, and Misr October for Food Industries (El-Masreyeen) during the first quarter of 2016. Qalaa's subsidiary, Rift Valley Railways, needs new capital to strengthen its railway operations and move it into profitability. However, the company is now directing its financial resources to the development of its energy sector projects. Therefore, Qalaa decided to label Rift Valley in its budget as ‘liabilities held for sale'. Qalaa recorded net losses of EGP 242.7m in Q1 of 2016 compared to EGP 112.2m in Q1 of 2015. The company also recorded an 11% decline in its revenues of EGP 1.732bn in Q1 of 2016 compared to EGP 1.947bn in Q1 of 2015.
