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WDEPC to pay JPY 327m to Mitsubishi next week - Daily News Egypt

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WDEPC to pay JPY 327m to Mitsubishi next week

Company lost EGP 9.8bn due to exchange rate difference after flotation


The West Delta Electricity Production Company (WDEPC) is set to pay JPY 327m to Japanese company Mitsubishi next week, in return for its dues for the maintenance of the gas units at the Sidi Kreir power plant.

Engineer Mohamed Abd El-Baky Abu Senna, chairperson of the WDEPC, said that the company pays its maintenance dues every month according to the contract.

He added that the company pays the dues from its own resources, namely from selling electricity, and it does not obtain loans from banks. He noted that the WDEPC will not establish any new projects in the 5-year plan for 2017 to 2022, as the Damanhour power plant project was postponed.

He expected the company to suffer losses at the end of the current fiscal year, amounting to EGP 1.790bn as a gap between revenue and expenses, especially as the flotation caused the company to lose EGP 9.8bn due to the exchange rate difference after the flotation.

He pointed out that the Egyptian Electricity Holding Company (EEHC) gave directives to the other companies to divide the impact and burden, resulting from the flotation over several years through the capitalisation of the exchange rate difference, which means calculating the losses and disbursing them over several years.

Abu Senna added that the company presented the 2017/2018 fiscal year budget during the ordinary general assembly of the company, where it was approved, and that the difference between revenues and expenses targeted profits of EGP 1.8bn.

He said that the renovation done on production units raised their efficiency, noting that maintenance includes changing oils, cables, and pipes.

The ministry has put in place a plan to carry out the replacement and maintenance of the power plants to save fuel and raise efficiency, instead of building new plants that can cost a lot of funds. Some plants are modified to operate with combined cycles to reduce the fuel needed for operation and production.

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https://ww.dailynewssegypt.com/2017/05/09/wdepc-pay-jpy-327m-mitsubishi-next-week/
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