German Siemens seeks to obtain a fund worth EGP 7 billion (US$917.3million) from a group of banks working in the Egyptian market, a senior source told Amwal Al Ghad Monday.

The fund will be dedicated to implement three power plants, the source stated

The source said that a number of banks: National Bank of Egypt (NBE), Commercial International Bank (CIB), Arab African International Bank (AAIB) and Bank Audi -Egypt, are preparing to form banking consortium to provide the fund.

The source clarified that the banks had already sent a Letter of Intent (LOI) to the German firm, but they did not determine the value of the proposed funding as it relies on the amount of what the foreign banks would contribute.

Siemens is currently studying establishing four power plants in Beni Suef Governorate, Burullus area in Kafr el-Sheikh Governorate, and the new administrative capital with the capacity of 4.400MW for each plant in addition to a power plant in Alexandria with the capacity of 750MW, the source affirmed.

During the visit of Egypt’s President Abdel Fattah al-Sisi to German -aimed at providing Egypt with 12 wind power plants and construct three gas stations- the Egyptian government has signed cooperation protocol with Siemens worth € 8 billion to invest in generating renewable energy field.

Egypt’s electricity sector has recently got a number of joint loans most prominently is a US$521million-loan from Banque Misr, National Bank of Abu Dhabi (NBAD), Banque Du Caire, NBE, Bank Audi -Egypt, and Egyptian Gulf Bank (EGB) for the Egyptian Electricity Holding Company (EEHC) to finance its emergency plan and pay its dues for a number of firms among them is General Electric (GE).

Moreover, East Delta Electricity Production Company (EDEPC) got a loan worth EGP 725 million from NBE, QNB Alahli, CIB to fund two power plants in addition to EGP 3 billion pumped by NBE, BM, CIB, AAIB, QNB Alahli, and Faisal Islamic Bank (FIB) to finance two power plants in South Helwan and Asyut.

Source: Zawya