Electricity Ministry signs USD 250 mn contract to develop Phase 2 of power grid overhaul
The Electricity Ministry signed a USD 250 mn contract this week with the State Grid Corporation of China (SGCC) to help develop 1,210 km electricity distribution network as part of the second phase of upgrading the power grid. The company will be subcontracting the project to local developers in order to speed up work on the project with an eye towards completing before next summer, sources from the Egyptian Electricity Holding Company tell Al Mal. SGCC will help to provide funding for the project, the source added. On a related note, the Electricity Ministry is asking the cabinet of ministers and the Finance Ministry to expedite the release of some of its provisions so it can pay suppliers and contractors, Al Mal reports. Sources refused to disclose the exact sum the Electricity Ministry is seeking, but said it was part of the EGP 52.8 bn Electricity subsidy allocation in the budget. Among the partners expecting payment from the Ministry are Siemens and State Grid, the sources said.