The Egyptian Ministry of Electricity and Renewable Energy’s debts increased to EGP 90b to the Ministry of Petroleum and Mineral Resources, the Ministry of Finance and National Investment Bank, reported Al Mal News.
Officials at the Ministry of Electricity stated that the biggest part of the debt is for the Ministry of Petroleum as the debt is divided as EGP 70b to the Ministry of Petroleum, EGP 15b to the Ministry of Finance, while the remaining amounts should be paid for the National Investment Bank.
The debts are expected to further increase due to the EGP devaluation and the increase of fuel prices as the Ministry buys 1m thermal units for $3 and pays EGP 2500 for each ton of mazut and diesel.
The Ministry of Electricity pays around EGP 500m per month for the Ministry of Petroleum in exchange of fuel. The Electricity Ministry is further seeking loans from national banks to be guaranteed by the Ministry of Finance in order to settle some of the oil ministry’s debts.
The ministry is studying the possibility of the National Investment Bank to be a partner in the Egyptian Electricity Transmission Company (EETC)’s capital as a way of paying the debts.