The Egyptian Electricity Transmission Company (EETC) has decided to postpone the tenders for eight transformer substations at a cost of $370m, until it obtains the first tranche of a loan from the National Bank of Egypt totalling $18bn.
Sources at the company said that the tenders will be posed after obtaining the loan, especially as it will be dedicated to constructions for enhancing the electricity grid.
EETC and NBE had agreed on a loan of $18bn to support the national grid. The Ministry of Finance and the Central Bank of Egypt (CBE) will bear the loan interest, which is currently under discussion. EETC will bear repayment of the loan only.
The sources said that a tender for the establishment of four transformer substations worth $120m will be put forward soon. These transformers will be in East Sohag, with a capacity of 500 kV, in Qena, with a capacity of 500 kV, Zagazig, with 500 kV, and another one in Bilbes with a capacity of 220 kV.
This tender is part of the EETC’s plan to support the national grid to accommodate the new electricity capacities that will soon be linked to the grid.
Another tender for the remaining four transformer substations will also be put forward. These substations will all have a capacity of 500 kV and are located in the New Administrative Capital, Kafr El Sheikh, Qena, and Zagazig.
During the last cabinet meeting, chaired by Prime Minister Sherif Ismail, the ministers agreed to grant the Egyptian Electricity Holding Company (EEHC) and the EETC two loans, totalling EGP 37bn.
The Cabinet’s approval came under the directives of President Abdel Fattah Al-Sisi, who pointed to the importance of granting the necessary funding to improve the performance of distribution and transmission networks to accommodate the new output, amounting to 18,000 MW until 2018.
Minister of Electricity Mohamed Shaker had earlier noted that the development plan includes upgrading the transmission and distribution networks to accommodate the new electricity output produced by power plants in Borollos, the New Administrative Capital, Beni Suef, and South Helwan. Upgrading the networks will be done through establishing new modern electricity transmission networks, establishing new transformer substations, and improving existing stations.