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Ministry of Electricity negotiates with four consulting firms to establish substations in Aswan

Payment of cost-sharing third instalment postponed until completion of contract with the consultant

The Ministry of Electricity and Renewable Energy is negotiating with four consulting firms to prepare reports on the construction of four substations to transfer energy produced from solar plants to be launched in Benban, Aswan.

The ministry has decided to postpone the payment of the third instalment of the cost-sharing agreement of solar energy projects in Benban until completion of the contract with the consultant.

A source at the ministry said that investors are supposed to pay the value of the third instalment of cost-sharing, which amounts to $10m this month. The instalment has been postponed 30 days until completion of the contract with the consultant and preparation of achievement reports of the construction of substations.

The source told Daily News Egypt that the ministry is negotiating with four consulting firms to prepare reports, especially as investors are paying instalments of cost-sharing based on executive business volume. He added that XD-EGEMAC, implementer of substations, completed all civil works of the establishment of stations.

He explained that investors have paid the first and second instalments of cost-sharing and provided letters of guarantee from the bank for the remaining amount so that the Egyptian Electricity Transmission Company (EETC) can repay the value of the substations.

Cost-sharing is one of the five agreements that eligible investors signed for the establishment of new and renewable energy feed-in tariff projects. Cost-sharing includes sharing the expenses of connecting solar power plant stations (to be launched by the national electricity network) with infrastructure work in the Benban region by using the feed-in tariff.

Companies that obtained lands to establish solar power plants in Benban paid off about EGP 20m of a total EGP 32m for each company. These expenses are for connecting power plants to the network, besides additional expenses of 12.5%.

The source also said that XD-EGEMAC is completing the launch of four substations to transfer energy produced from solar plants in Benban. Payment of the amounts by cost-sharing investors was repaid.

XD-EGEMAC will launch 12 substations of 175 MVA and will install nine units in Benban stations 1, 2, and 4 in addition to 12 units in station 3.

Source: This post was originally published in Daily News Egypt on July 3rd, 2016, by Mohamed Farag

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