The general assembly of the Egyptian Electricity Holding Company (EEHC) approved the establishment of four companies with a total capital of EGP 180bn.
Sources at the Ministry of Electricity said that the capital of each company will be calculated on the basis of their book values, which will include all of the company’s assets and property, including the cost of construction, land, and site preparation. All four companies will operate under the EEHC.
Moreover, sources said that three companies will be founded for each of Siemens’ new projects, including Beni Suef, Borollos, and the New Administrative Capital, all three of which will have a capital of EGP 40bn. Contracts for the three Siemens projects amount to €6bn, in addition to land purchase and preparation costs.
Another company is also being established to run projects in Ataka, Mahmudiya, West Damietta, West Assiut, Hurghada, and Sharm El-Sheikh. These projects are part of the urgent plan established in accordance with the president’s five-year plan. The company will have EGP 60bn in capital.
The urgent plan project’s costs amount to $3.6bn.
Sources said that the chairperson of the EEHC will begin forming a board of directors for the four companies within a week, adding that after appointing chairpersons, assets will be transferred to establish administrative bodies for each company. They noted that each company will employ 500 technicians and engineers.
Furthermore, chairpersons of the four companies will negotiate with consulting offices to put the companies forward for public subscription and to estimate the share value in preparation to listing the companies on the Egyptian Exchange at the end of 2017.
The EEHC has prepared a list of 12 candidates for the chairpersons’ positions. All the candidates are currently working at EEHC-affiliated production companies.
Sources said that there are three scenarios for handing over existing management projects to potential chairpersons.
The first scenario involves handing over existing projects next month to the chairperson to manage until the end of the project’s timetable. The second scenario would be to form a board of directors for each company and establish administrative bodies while the project is ongoing. The third scenario involves handing over the urgent plan projects to the board of directors of the corresponding company.
The first phase of the Siemens projects will be completed next month. The project will then be handed over to the three correspondent boards of directors.
The total capacities that will be produced from the four companies’ projects add up to 18,000 MW, including 14,400 MW from Siemens projects and 3,600 MW from the urgent plan projects.
The sources said that the EEHC will pay for the loans of Siemens projects until the boards of directors of the three companies are formed.