The Egyptian Electricity Holding Company (EEHC) decided to contract with Siemens for the operation and maintenance of the power plants in Beni Suef, the New Administrative Capital, and Borollos after a competition with Korea’s Doosan.
Sources at the EEHC told Daily News Egypt that a committee evaluated the offers from Siemens and Doosan, explaining that the latter had a better financial offer, but Siemens’ overall evaluation outperformed its competitor’s.
The sources said that the committee formed by the EEHC will begin negotiations with Siemens to reduce the financial value of the operation and maintenance of the stations, which is welcomed by the German company, especially as the company is establishing the three stations.
The sources explained that the Siemens offer was the best in all respects except for its high value compared to Doosan, which the EEHC will negotiate in the coming period.
According to the offer, Siemens will receive its first dues after four years of the eight-year contract, in both local and foreign currencies.
The sources said that Siemens will operate and maintain all components of the power plants in Beni Suef, the New Administrative Capital, and Borollos, which is a different contract from the €1.5bn for the maintenance of the gas unit signed between the EEHC and Siemens.
Several companies were bidding for the contract, including Siemens, Steiaj-PGESCo, Orascom-Adera Energy, Elsewedy-EDF, Triangle-GD France, Korea’s Doosan, and Japan’s Mitsubishi.
The EEHC was choosing between Siemens and Doosan, while the other bids were excluded.
The higher committee for procurement objected to two points when reviewing bids and demanded their avoidance, including the non-approval of the entry of financially weak companies except in the presence of a bank guarantor.
The second condition was that companies have flexibility in the agreement after the financial offers have been opened, and that they have the possibility to waive certain items in exchange for awarding the contract, if the offer was the best financially.