CAIRO: Egypt’s cabinet approved Wednesday a request submitted by the electricity ministry to establish six high-voltage plants worth €240 million ($267 million) proposed by Siemens, Youm7 reported.
The proposal includes designing, manufacturing, supplying and installing the required equipments to establish gas-insulated switchgear (GIS) in Asyut and Wadi al-Natroun power stations, according to Youm7.
Siemens proposed to establish and expand the six power plants with the same financing terms agreed upon in the established 14,400 MW power plant.
Four Memoranda of Understanding (MoU) out of the 21 signed in the Egypt Economic Development Conference (EEDC) were finalized during President Abdel Fatah al-Sisi’s visit to Germany in Jun, an official source at the Ministry of Electricity told Youm7.
The four MoUs will be signed with Germany’s Siemens to establish three power plants, with a capacity of 14,400 megawatts, and a factory at the New Suez Canal axis to manufacture wind turbines’ blades, with a total cost of €2 billion ($2.23 billion.)
The source pointed that the total cost of establishing the three power plants reaches €6 billion ($6.6912 billion,) with a capacity of 4,800 MW for each plant.
Siemens signed a €8 billion deal ($9 billion) with Egypt during Sisi’s same visit to supply gas and wind power plants designed to boost the country’s power generation by 50 percent.
The deal is a finalization for Memoranda of Understanding signed in March with Siemens and other suppliers including General Electric.
“Installations, when completed, would add 16.4 gigawatts to Egypt’s national grid,” said Siemens.
12 wind farms, with a total of 600 wind turbines generating2 GW, were included in the deal.
Siemens will also build a rotor blade manufacturing facility that will provide training and employment for up to 1,000 people.