Egypt Paid $2.35b to Siemens

Egypt Paid $2.35b to Siemens

The Egyptian Ministry of Electricity paid $2.35b to Germany’s Siemens for construction work in addition to providing turbines and equipment for Burullus power plant, Beni Suef Power Plant, and New Capital Power Plant, reported Al Borsa.

A source from the Egyptian Electricity Holding Company stated that the invoices presented by Siemens were authorized and paid in order for the company to continue work in the 3 power plants to meet deadline.

Accordingly, the ministry contacted KfW Development Bank, Deutsche Bank, and HSBC Bank to have the funds transferred to Siemens. Under the funding agreement Cairo signed with the banks for around $4.58b out of a total of about $6.7b for projects handled by Siemens, the country will schedule the amounts to be paid back to the banks over 3 years.

In addition Arabic Banks agreed to finance the three projects by paying dues to the Egyptian partners Orascom and El Sewedy Electric.

Egypt Oil&Gas reported mid September that the Egypt had agreed with Siemens to run two electricity production units in the Beni Suef power plant, with a capacity of 800MW, by November 2016. In addition, gas supply lines to the Beni Suef power plant were successfully linked to the grid and six concrete production units were inaugurated.

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Sarah Samir 3516 Posts

Sarah has been writing in the oil and gas field for 8 years. She has a Bachelor Degree in English Literature. She has three years of experience in the banking sector.

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