The Ministry of Electricity has paid EGP 21.2bn of its debts to the Ministry of Petroleum, from a total debt of EGP 60.9bn.
Government sources said that the Ministry of Electricity paid EGP 20bn from a loan obtained from Banque Misr and the National Bank of Egypt, adding that the loan will be repaid over seven years with a grace period extending to two years. The additional EGP 1.2bn was paid from collected revenues of electricity bills.
Moreover, the source said that they agreed with the Ministry of Petroleum to pay EGP 500m per month, while the Ministry of Finance will pay 50% of its monthly bill.
Power plants consume about 83m cubic feet of gas in winter, which increases to 145m cubic feet in the summer.
President Abdel Fattah Al-Sisi met with Minister of Electricity Mohammed Shaker to discuss the latest developments of the new projects being implemented to secure energy sustainability.
Shaker presented the sector’s plan that includes the establishment of power plants fuelled by gas, coal, and renewable energy sources, as well as the upgrades of the transmission and distribution grid to sustain high quality service and a continuous energy feed to the household, commercial, and industrial sectors.
Shaker pointed out that the three new power plants being established in Beni Suef, Borollos, and the New Administrative Capital will output a total of 14,400 MW, which would save fuel worth $1bn per year.
He added that the power plants are partially operative with 12 turbines producing 4,800 MW. He stressed that they are based on new technology that has not been used in Egypt before with up to 60% efficiency.
Alaa Yousef, spokesperson for the presidency, said that Shaker also provided a report on the burdens borne by the state to subsidise electricity, noting they have increased from EGP 30bn before the flotation of the Egyptian pound to EGP 65bn per year.