Egypt’s Ministry of Electricity is set to pay EGP 700m to the Ministry of Petroleum and Mineral Resources, as part of the arrears it owes for fuel used for electricity production, Daily News Egypt reported.

Official Sources at the Egyptian Electricity Holding Company (EEHC) said that it is committed to pay EGP500m per month for the fuel it uses to feed its plants, adding that the increase of arrears to EGP41b forced the company to raise the monthly installments to EGP700m.

Total estimated value of fuel consumption of the Ministry of Electricity stands at EGP 3.6-3.9b per month. The Ministry of Finance pays 50% of the bill on behalf of the electricity ministry.

The Ministry of Electricity paid EGP 20b to the Petroleum Ministry through the loan it obtained from Banque Misr and the National Bank of Egypt. The ministry also paid EGP 1.2b from the collection of electric bills. Collectively, the ministry has paid EGP 21.2b of its arrears to the Ministry of Petroleum, leaving EGP 41b, a source stated to Daily News Egypt.