The Egyptian Electricity Holding Company (EEHC) signed a memorandum of understanding (MoU) with Euro Africa Company to conduct a feasibility study to implement an electricity project that would connect Egypt, Greece, and Cyprus.
Minister of Electricity Mohamed Shaker explained that the MoU includes a feasibility study that will determine the future steps that will be taken in the project without setting any obligations on the Egyptian side.
He added that this study includes a number of items, such as the evaluation of different options and alternatives to the project’s specifications. The study will also include an economic assessment, and will look at the costs of construction, operation, maintenance, insurance, and guarantees.
Beyond that, the study will look into applicable environmental regulations, the initial financing plan, and initial implementation programmes.
The MoU will be implemented in 18 months and will be extended in accordance with the agreement between both parties. The electricity project aims to link Egypt, Cyprus, and Greece through the island of Crete.
Edith Nadoos, Head of Euro Africa Company, said that the project allows linking Cyprus and Crete to the European Union, and provides economic and political benefits to the concerned countries.
He pointed to the importance of submarine power cables and their benefits to Egypt’s strategic plan for economic development and energy security. This project is one of the projects that will help link Egypt to the European electricity grid.
He added that the implementation of the project strengthens and benefits the partnership between the three countries taking into account the recent updates in the energy sector—in particular the expectations regarding an increase of the demand for electric energy production according to the current development in the energy sector in all three countries.
He mentioned that we will need a project to connect electricity from Egypt to Cyprus, and from there to Greece and then to the rest of Europe in the future. Egypt will be an important energy carrier for the European continent.
This agreement emphasises President Abdel Fattah Al-Sisi’s vision, and activates the policy of the government, which aims to strengthen Egypt’s role as a regional centre for power in the Middle East.