The Cabinet approved a system of buying electricity and petroleum products taken from recycling factories with prices amounting to EGP 0.92 per kWh, with 70% of the international prices of the products, in accordance with the specifications. Payments should be in Egyptian pounds.
According to the cabinet’s decision, the method of obtaining the financial resources needed for all the governorates to collect and transport the wastes was agreed upon, obligating citizens to pay part of the fund in order to ease the burden on the general budget. A working group will be formed, studying the project’s economics, and accurately revising these prices, to achieve balance between the country and the investor’s interests.
The group will be formed by representatives from the Ministries of Environment, Finance, Electricity and Renewable Energy, Petroleum, and Local Development. Minister of Environment Khaled Fahmy is responsible for presenting the mechanisms of executing the project in the next cabinet meeting.
Among the standards of dealing with recycling projects is providing facilitations for the provision of land required for waste recycling factories through the usufruct system and with appropriate payment.
Governors will also present the offers for the establishment of waste recycling factories in coordination with the Ministry of Environment, without prejudice to the right of the governorates to work on these projects.
Sources at the Ministry of Environment revealed that four offers were received from companies operating in the field of waste recycling for establishing projects to produce electricity from waste.
The sources added to Daily News Egypt that the company M Power has made an offer to sell a kWh at about EGP 1.3, and Yushin made an offer of EGP 1.12. Zap offered EGP 1.096, while Damietta factory offered EGP 0.96.
The sources explained that the cabinet approved state purchases of electricity and petroleum products produced from waste recycling factories at EGP 0.92 per kWh.
The Ministry of Electricity is currently holding several consultations with investors in the recycling sector to know the main problems and obstacles encountered in this sector, and work to resolve them through the investors’ committee in the ministry.
Source: Daily News Egypt