CAIRO: The Ministry of Electricity and Renewable Energy signed a contract for the project of controlling energy in the southern region worth 265 million EGP ($27.5 million) to mitigate power outages caused by fuel shortages.
The signing ceremony was attended by the Japanese ambassador to Egypt and representatives of the Japan International Cooperation Agency (JICA) and officials from the electricity sector, the ministry stated on its website Tuesday.
JICA representative Mayada Magdy said last February in the closing session of an investment in renewable energy conference that Japan International Cooperation Agency (JICA) will offer soft loans for new and renewable energy projects in Egypt.
Magdy said that JICA is also willing to offer technical support and training programs to governmental establishments to conduct new and renewable energy plants.
The Minister of Electricity Mohamed Shaker said Tuesday that it is among the ministry’s “top priorities to improve, develop the service and guarantee the stability of electricity in Upper Egypt.
“The project will include replacing the regional control center in Nagaa Hamady, and constructing new regional control center in Samalout,” the ministry statement read.
The total cost of the JICA cooperation projects is estimated is worth $106 million, obtained through the soft loan attained from JICA, and construction is scheduled to begin December 2016.
During the past couple of months, power outages have increased in several governorates, which caused residents to threaten not to pay electricity bills.
The lack of fuel is the main reason behind the power outages, Hafez Salmawy, head of the Egyptian Electric Utility and Consumer Protection Regulatory Agency, told The Cairo Post in March.
An informed source at the Ministry of Electricity told Youm7 Tuesday that the ministers of petroleum and electricity will hold an emergency meeting at the headquarters of the Ministry of Petroleum to discuss the power crisis.
Additional reporting by Rahma Ramadan.