The Ministry of Electricity and Renewable Energy plans to sign four memorandums of understanding (MOU), and three loans with Japanese companies during President Abdel Fattah Al-Sisi’s visit to Tokyo this month, reported Daily News Egypt.
A senior official at the Ministry of Electricity said it had agreed to sign two loans with the Japan International Cooperation Agency (JICA). The first loan will fund a $50m solar power plant project that will have a capacity factor of 20 MW, while the second loan will finance the a smart grids project. There is also discussion to arrange another loan to finance the replacement and renovation of six power plants.
The official also added that the Ministry of Electricity plans to sign four MOUs with a number of Japanese companies. The total Japanese investment is estimated at $8b and will fund the installation of two power plants working with coal, along with a combined cycle power plant, and will make provision for the supply of coal.
The Japanese companies with which Egypt plans to sign agreements and MOUs include: Hitachi, Kyocera, Mitsubishi, and Toyota.
The MOUs and financing agreements are contingent upon the review of security authorities, the ministries of foreign affairs, and the JICA. While preparations are currently being made, the deal will not be final until President Al-Sisi visits Japan later this month.