The Egyptian Electricity Holding Company (EEHC) has paid €4.8bn to Siemens for its work at the Beni Suef, Bruluss, and New Administrative Capital power plants.
An official at EEHC said that Siemens provided bills and they were approved and disbursed.
He noted that EEHC will not postpone payments so that the company can complete the establishment of the three plants in time.
The source told Daily News Egypt that the banks that financed the projects disbursed €4.8bn of the loan obtained by EEHC and will begin to repay it after the commercial operation begins in May.
Three German banks, KfW Development Bank, HSBC, and Deutsche Bank, secured funding for Siemens’ projects in Egypt, amounting to €4.1bn of a total contract value of €6bn. Arab banks secured the remaining funding in Egyptian pounds to pay for the Egyptian companies participating in construction, including Elsewedy Electric and Orascom.
Nadia Katary, EEHC board member for financial and commercial affairs, told Daily News Egypt that EEHC approved bills submitted by Siemens worth 75% of the total cost of the contract.
She explained that the rates of implementation of the three power plants are not measured by the total amount paid of the financial value.
Siemens plans to add 1,200 MW to the national grid next month from three production units at the New Administrative Capital power plant.
Siemens has started operating tests for three production units of the New Administrative Capital power station, which will last for three weeks, and then link the capacity to the national electricity grid, sources with the Ministry of Electricity said.
The company will also add 400 MW from the Beni Suef power station in February 2018. According to the agreement with the German company, 1,600 MW will be added in March 2018, and will include 1,200 MW across three production units from the Beni Suef plant and 400 MW from the Brulus power plant.
