Three German banks to sign €4.1bn contracts for Siemens’ Egypt power projects

Egypt is to sign Sunday landmark contracts with a consortium of German banks for electricity production undertakings to be constructed by German industrial giant Siemens.

The banking consortium; Deutsche Bank, HSBC Germany and German Bank of Reconstruction (KFW) will secure €4.1 billion in finances, equivalent to 85 percent of the total cost of the three Egyptian projects, which amounts to €6 billion, said Egyptian electricity minister Mohamed Shaker.

Upon the anticipated contracts, the loans will be repaid over a period of 15 years with a three-year grace period, Amwal Al Ghad quoted minister Shaker as saying.

Gaber Desouky – Chairman of the state-run Egyptian Electricity Holding Company (EEHC); and officials from the German banks are to sign the contracts in the presence of Egypt’s Prime Minister Sherif Ismail and representatives of Siemens Group, Orascom Construction, and El-Sewedy Electric.

Orascom and El-Sewedy are the local partners for Siemens to carry out the three projects.

The three projects undertaken by Siemens, Orascom, and El-Sewedy are with total capacity of 14,400 megawatts.

The first project is Beni Suef proper, about 115km (71 milles) south of Cairo, to generate 4,800 megawatts. The second project is located in Burullus, near the town of Kafr el Sheikh, some 210km (130 miles) north of Cairo; the third planned plant is set to be in the Egyptian new administrative capital city.