Economic Ministerial group approved the China’s State Grid Corporation offer to establish networks of 500 kV lines and the terms of funding provided by the Chinese, according to cabinet spokesperson Hossam El-Kawish.
The Economic Ministerial group held a meeting Tuesday, headed by Prime Minister Sherif Ismail, in the presence of the ministers of Planning, Finance, Supply, Solidarity, Electricity, Investment, Tourism, Agriculture, International Cooperation, Communication, Industry, and Petroleum.
China’s State Grid agreed with the Egyptian Electricity Transmission Company an agreement to develop Egypt’s electricity transmission grid at the cost of $1.8bn, which they signed on the second day of the Economic Summit in Sharm El-Sheikh in March.
El-Kawish said the ministerial group also approved ATD Combustors Company’s offer on a project to improve energy efficiency of El-Waleedya stream plant, which operates with power of 2 × 300 MW, depending on diesel fuel. The company offered to bear the investment costs for the project.
“The total project investment will be divided equally between the electricity and renewable energy sector and the ATD Company on the basis of the price of diesel,” El-Kawish said. “The project will contribute to improve and save fuel consumption and raise the efficiency of the plant”.
During the Economic Summit in March, a Memorandum of Understanding (MOU) was signed between Egyptian Electric Holding Company and ATD to modernise and develop Ataka power station in the governorate of Suez with an investment of $226m.
The agreement includes training and qualification of manpower, to enhance the skills of workers to work efficiently.
During the past two years, Egypt suffered from electricity cuts in all governorates due to the increase of demand and decrease of supply and the deterioration of quality of stations and lack of maintenance.
Egypt devoted a large amount of imported gas to support the power plants and called on investors to pump their money in the power and electricity sectors.