Egypt's SCZONE eyes deeper investment, port digitalisation ties with Singapore    Egypt's gold prices slip slightly on July 28th    Egypt's Housing Min. reviews HDP marketing plan    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egypt, South Africa pledge to deepen development cooperation at G20 meeting    Egypt's PM orders road maintenance review, tougher penalties to curb accidents    Egypt, Novartis explore expanding collaboration in oncology, cardiology    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    EU, China agree on rare earths, climate but divisions remain on trade, Ukraine    Association of Real Estate Developers seeks urgent meeting over threatened land deallocation on Northwest Coast    Midar partners with Adeer to develop Boulevard project in Mostakbal City with EGP 70bn investment    Iran launches mass deportation of Afghans amid spying allegations    Over 60 million visits recorded under Egypt's Women's Health Initiative since 2019    Culture minister launches national plan to revive film industry, modernise cinematic assets    Thailand, Cambodia clash on new front as tens of thousands flee    Sudan's ambassador to Egypt holds reconstruction talks on with Arab League    I won't trade my identity to please market: Douzi    Egypt welcomes 25-nation statement urging end to Gaza war    Sisi sends letter to Nigerian president affirming strategic ties    Egypt, Senegal sign pharma MoU to unify regulatory standards    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt foils terrorist plot, kills two militants linked to Hasm group    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Government postpones negotiations on 5 electricity projects signed at Sharm El-Sheikh Economic Conference
$23bn worth of investments are suspended; competitive bids are the only solution
Published in Daily News Egypt on 03 - 12 - 2016

The government has decided to postpone negotiations on a number of memorandums of understanding (MoU) signed in March 2015 at the Sharm El-Sheikh Economic Conference.
Government sources said the state postponed negotiations on five projects for producing electricity from various sources. This move is due to all these capacities not being required at the moment; rather, the national grid must be expanded and strengthened so it can absorb the added capacity.
These projects include three MoUs with Saudi Arabian company Acwa power and Emirati company Masdar. The planned developments included implementation of a power plant with a combined-cycle system at a 2,200MW capacity in western Damietta with $2.5bn in investments, as well as solar plants in several locations with total capacities of 1,500 MW, and a 500 MW wind plant at an estimated cost of $2.4bn
The government postponed negotiations with Acwa Power for a 2,000 MW coal plant, which will be upgraded to 4,000MW, at a cost estimated at $7bn.
The list also included Tharwa Company's MoU to establish an $11bn coal-operated power plant.
According to sources, the Ministry of Electricity has initiated a plan worth EGP 33bn to strengthen and expand the national grid so it can contain the capacity over the next three years. This is a necessary endeavour because if the ministry adds more capacities and the grid is incapable of containing these additions, it would be considered wasted energy.
The main reason that negotiations were frozen is the impossibility of providing financial guarantees for all projects in the current period, the sources said. This is in addition to the decline in load growth rates. Production reserves reached about 3,000 MW per day.
If the negotiations on the MoUs are completed, they will be put up for bid for companies to choose the best technical and financial offers, the sources said.
The MoUs for Siemens have been activated and the contracts have been completed. The Germany company holds the inauguration of three plants to produce electricity through a combined-cycle system with a 14,400MW capacity that provides a third of the fuel used in Beni Suef, the New Administrative Capital, and Borollos. This involves a €6bn investment.
The memorandum of understanding that was signed with China's State Grid Corporation was also activated to establish 1,210-km long, 500KV power lines.
The Ministry of Electricity is still negotiating with a number of companies that have signed MoUs to establish coal-fired plants, including El Sewedy Electric, Marubeni, Shanghai Electric, and Orascom.


Clic here to read the story from its source.