In an interview with Daily News Egypt, two top representatives of the German company Siemens stated that they will establish a $68.2b power plant maintenance company in Egypt at the end of 2016. Cooperation studies between the company and Egypt’s Ministry of Electricity are ongoing to maintain all electricity production units across the country.
In December 2015, the government had signed a contract with Siemens to ensure provisions for the construction the Beni Suef power plant.
Previously, the Egyptian government signed a memorandum of understanding (MoU) with Siemens during the Egypt Economic Development Conference held in Sharm El-Sheikh in March 2015 to establish two power plants, in addition to a wind farm with a capacity of 2,000 MW. The final details of the contract indicate that the two power plants and the wind farm require $8b in investment.
Siemens began shipping the main construction components to Egypt in March 2016, and the company has also begun training 600 Egyptian engineers and technicians and signed financing contracts for both stations in Borolos and the New Administrative Capital.
Siemens top executives affirmed that the company is working at a fast pace to complete its Egyptian projects, and these projects are being established at competitive costs.
The new power plants will initially introduce an additional 4.4 MW to the national grid by the end of December 2016, before increasing to a total addition of 14.4 MW in 2018. The three plants are expected to save EGP 1.3b annually by decreasing fuel consumption.
Meanwhile, Europe’s biggest engineering company reported a 28% jump in profit and raised a goal to cut costs as contracts for power plants in Egypt and wind turbines in the UK helped bolster its order books, wrote Bloomberg.