Egypt and Germany sign
cooperation agreements worth €320 million
Minister of Investment and
International Cooperation Sahar Nasr on Tuesday signed three cooperation
agreements with German Minister of Economic Cooperation and Development Gerd
Muller and the German Bank for Reconstruction to the value of 320 million
This came during the second
round of the Egyptian-German committee for joint cooperation.
The agreements included one on
supporting the Egyptian economic reform program to the value of 225 million
euros and another one for financing projects to the value of 45 million
A third agreement with the Bank
was signed for supporting small scale projects to the value of 50 million
Attending the ceremony were
Minister of Electricity Mohamed Shaker and Minister of Environment Khaled
Fahmy along with Minister of Education Tarek Shawky
Investment authority okayed
free zone in Nuweiba
Egypt’s Minister of Investment
and International Cooperation Sahar Nasr has met with Governor of South
Sinai Khaled Fouda at the ministry’s H.Q.
Nassr said that the board of investment authority has recently agreed to
establish a free zone in Nuweiba, South Sinai province, and to create an
investment zone for tourism activities on an area of 8000 feddans, along
Sharm El Sheikh.
The ministry has devised a plan to establish a public free zone in each
governorate as part of a strategy aiming at maximizing the role of free
zones in improving investment climate in the country until 2034, which would
enable the investor to easily transport and export his products/ services at
the specified time, according to Nassr.
She pointed out that the ministry is keen to support developmental and
investing projects in South Sinai.
The meeting discussed the rate of implementing developmental projects in the
province as part of Sinai development scheme financed by some Arab funds.
South Sinai projects are valued at USD 947 mn.
The convention also discussed investment opportunities in the governorate
and investing plans until 2030.
Electricity addresses both
Cabinet, Finance to pay foreign companies dues
The Ministry of Electricity and
Renewable Energy, has sent a letter both to the Cabinet and the Ministry of
Finance, demanding them to quickly let part of the allocations be made to
repay dues of the companies, contractors in the ongoing electricity
Ministry’s sources refused to
disclose the required value, but stressed that the required amounts come
within the scope of electricity subsidies in the current budget, amounting
to about 52.8 billion pounds.
Sources also pointed out that
the government has not made any allocations to the Ministry of Electricity
since the beginning of the current fiscal year.
In previous statements,
Minister of Electricity, Dr. Mohamed Shaker announced that the current
year's subsidy amounted to 25.8 billion pounds, while in the coming year
2019/2018 it would fall to 43.3 billion pounds , then 31.81 billion pounds
during the fiscal year 2019/2020 , and 16.5 billion pounds in 2020/2021.
Ministry of Electricity gets
the natural gas - which has a global price of about $ 10 per million thermal
units - from the Ministry of Petroleum at $ 3, while the Ministry of Finance
bears the price difference.
The required allocations,
sources continued, will be directed to repaying part of the cost of the
construction of Siemens plant which costs a total of about 6 billion euros,
up to about 120 billion pounds, in addition to repaying part of the China’s
state grid’s receivables, whose total investments reach about 10 billion
pounds , as well as some power distribution and transmission projects.
30% of gas field off Egypt
Russia's Rosneft said it has completed a deal to
acquire a 30% stake in the Zohr field, the largest gas field in the
Mediterranean Sea, from Italy's Eni for $1.125b.
Eni will retain a 60% stake in the field, located
off the coast of Egypt.
BP holds the remaining 10% interest.
'Participation in the development of a unique
production asset will strengthen positions of Rosneft in the strategic
markets of Europe and Middle East,' Rosneft said.
JICA funds solar power plant in Hurghada
with $60 million
The Japanese International
Cooperation Agency (JICA) has approved funding a solar power plant in
Hurghada for $60m after the project was halted for over two years.
Mohamed El Khayat, the
chairperson of the New and Renewable Energy Authority (NREA), said that
contracting took place with an advisor of the project to establish a solar
power plant of 20 mw capacity. The tender will be offered for Arab and
international companies to launch the project mid next year. The executive
regulations will be completed in February.
He explained that the JICA has
completed the project’s feasibility study and provided a $1.5m grant to
place equipment in the plant’s location with the aim of measuring the solar
emissions to be sure about the project’s feasibility during different times
of the year and calculate the expected production at the implementation.
Part of the financing is allocated for developing the centres of NREA.
The plant is considered the
fifth of its kind after El Koraymat plant of 20 mq capacity, Kom Ombo of 200
mw, Kom Ombo of 200mw, Hurghada of 20 mw with total 280mw capacities.
A source in the Ministry of
Electricity revealed that there were negotiations with the JICA that focus
on technical cooperation to benefit from the Japanese technology especially
in coal-fired electricity generation plants. With the last exchange of
expertise being the visit of an Egyptian delegation to Tokyo. The delegation
is composed of representatives of the Egyptian Electricity Holding Company,
the Ministry of Electricity and the Environmental Affairs agency, with the
aim of benefiting from the Japanese experience in the field.
He explained that several
Japanese banks agreed to finance a project to enhance the services of
electricity distribution companies. It is expected to pay the allocated loan
on several portions starting next month.
The Ministry seeks to produce
20% of electricity through new and renewable sources by 2020 through
competitive tenders and direct contracting systems in addition to the
feed-in tariff projects of 4200 mw, with investments worth $7.5bn.