The Ministry of Electricity and Renewable Energy plans to sign four memorandums of understanding (MOU) and three loans with Japanese companies and financial institutions during the visit of President Abdel Fattah Al-Sisi to Tokyo which is planned for later this month.
A senior official at the Ministry of Electricity said it had agreed to sign two loans with the Japan International Cooperation Agency (JICA). The first loan will fund a $50m solar power plant project that will have a capacity factor of 20 megawatts, while the second loan will finance the a smart grids project. There is also discussion to arrange another loan to finance the replacement and renovation of six power plants.
The official also added that the Ministry of Electricity plans to sign four MOUs with a number of Japanese companies. The total Japanese investment is estimated at $8bn and will fund the installation of two power plants working with coal, along with a combined cycle power plant, and will make provision for the supply of coal.
The MOUs and financing agreements are contingent upon the review of security authorities, the ministries of foreign affairs, and the JICA. While preparations are currently be made, the deal will not be final until President Al-Sisi visits Japan later this month.
The Japanese prime minister granted a soft loan of $360m to Egypt, in January 2015, to be directed to the construction of an airport and renewable energy projects.
The Japanese companies with which Egypt plans to sign agreements and MOUs include: Hitachi, Kyocera, Mitsubishi, and Toyota.
The Ministry of Electricity’s delegation to Japan is headed by Mohammed Shaker, the minister of electricity and renewable energy. The delegation includes: Gaber Dessouky, chairman of the Egyptian Electricity Holding Company; Mohamed Salah El-Sobky, executive chairman of the New and Renewable Energy Authority; Sabah Mashaly, first undersecretary at the Ministry of Electricity for development of political communication; Maha Mustafa, first undersecretary at the Ministry of Electricity for planning and international cooperation.