At a value of two billion dollars.. The Egyptian government’s intention to sell the Beni Suef Electricity Company is controversial

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The announcement of the efforts of two foreign companies to purchase a large Egyptian power station in a deal worth about two billion dollars sparked a wave of controversy and questions on communication platforms.

And media outlets revealed the government’s intention to sell the “Siemens” power plant in Beni Suef Governorate, south of the capital, Cairo, to the British “Actis” and the Malaysian “Edra Energy”.

Journalist Amr Adib said, “We heard news that two British and Malaysian companies are seeking to buy 70% of the Siemens power station in Beni Suef.”

Adeeb asked, “The Beni Suef power station, what is the nature of its contractual form and its dealings with the public if it is sold? Will it sell electricity to the state or to citizens?”

According to the agency,bloomberg(Bloomberg) Britain’s Actis and Malaysia’s Edra Power intend to bid for as much full ownership of the power plant in a deal worth about $2 billion.

And the agency considered that the deal – which was not achieved in 2019 – may be the highest value ever, pointing out that it will enhance the country’s turbulent economy in light of the state’s endeavor to provide foreign currency.

The Egyptian authorities did not reveal the details of the deal, but Egyptian Prime Minister Mustafa Madbouly had indicated, on the eighth of last May, that there were agreements regarding the implementation of the offering program that takes place with a number of international investors for some companies, stressing that its details will be announced soon.

The official spokesman for the Presidency of the Council of Ministers, Nader Saad, confirmed that the government meeting that took place in early May with the governor of the Central Bank and a number of ministers witnessed a review of the position of offering the Siemens power station in Beni Suef.

Despite Egypt’s aspiration to collect about two billion dollars in the event of the completion of the deal, which will provide the country’s scarce foreign currency, the talk about selling the station, which contributes nearly 20% of electricity production in Egypt, raised controversy and many questions among the pioneers of social media platforms.

Blogger Ahmed Ashraf said that the Siemens station cost about $2.45 billion, excluding operating costs, from 2018 until now.

One of the tweeters asked about the ability of citizens to pay the electricity bill after privatization.

Another commented, “We borrowed money to build a power station in Beni Suef, and now we sell it in order to pay off the money we borrowed.”

While tweeter Najwa believes that it is a good deal from an investment point of view, stressing that the entry of a foreign operator will also increase efficiency and experience.

The station is located 110 kilometers south of Cairo, near the eastern village of Ghayada, affiliated to the Biba Center, south of Beni Suef.

The station consists of 12 turbines, including 8 gas turbines and 4 steam turbines. The capacity of each turbine is 400 megawatts, as it operates in a combined cycle and closed cooling system. The station is divided into 3 runways.

The project took 3 years, as the works of the first phase were completed in 2016 with about 2,400 megawatts, and another 400 were added in the second phase in 2027, and ended with the addition of 4,800 megawatts in 2018, before it was connected to the national electricity grid at a voltage of 500 kilovolts.

In July 2018, the Egyptian president inaugurated the station – via video conference – during his inauguration of the New Administrative Capital power station, according to The official website of the Presidency of the Republic.

The station operates with combined cycle technology, as it relies on natural gas for its operation with a capacity of 4,800 megawatts, at a cost of 2.05 billion euros, on an area of ​​500,000 square meters.

AndEgypt is looking forward to raising about two billion dollars In the event of the completion of the sale of the station, which contributes to approximately 20% of the electricity production in Egypt, which will provide the scarce foreign currency in the country.

Egypt’s external debt jumped by 5.5% during the last quarter of last year, reaching $162.9 billion by the end of December 2022, compared to $154.9 billion last September.

Source : Al Jazeera + Sanad Agency + Websites + social media sites



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At a value of two billion dollars.. The Egyptian government’s intention to sell the Beni Suef Electricity Company is controversial

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