The Ministry of Electricity and Renewable Energy agreed with NI Capital company to promote and cover the initial public offering (IPO) and the financial advisory, owned by the National Investment Bank (NIB), to establish four companies for electricity production in June and put them on the Egyptian Exchange (EGX).
Three of the companies to be established are for electricity projects implemented by the German company Siemens in Borollos, the New Administrative Capital, and Beni Suef, said chairperson of the Egyptian Electric Holding Company (EEHC) Gaber Dessouky. Siemens will establish three combined-cycle power plants, by which the exhaust gas will be reused to generate energy. The cost of contracting these three stations is €6bn, in addition to the €4bn cost of the land and equipment.
The fourth company is part of the Ministry of Electricity’s urgent projects and will be responsible for the operation and maintenance of these urgent plans with investments of $2.3bn. This is part of the five-year plan to increase the capacity of the national grid to 3,632 MW from 2012 to 2017.
The EEHC and NI Capital have formed a committee to assess the current situation of the assets and to determine the companies’ capital. It has been initially agreed that the EEHC will be a partner in the four companies with 51%.
According to the proposal, the company’s IPO will expand the electricity projects’ financing and will allow citizens to participate in the energy projects. The electricity sector is entering the establishment phase of modern companies owned by citizens, besides companies that are owned by the state and the private sector’s projects.
The study conducted by NI Capital will determine whether there will be one company for the three projects implemented by Siemens, or whether three companies will each have a power plant, first undersecretary for Developing Performance and Political Communication at the Ministry of Electricity Sabah Mashaly told Daily News Egypt in a special statement.
The first phase to estimate the current situation of the assets will be completed in June. The second and third phases will be completed in October.