Is Egypt’s Electricity Ministry on a privatization drive?
Is the Electricity Ministry on a privatization drive? The Egyptian Electricity Holding Company (EEHC) could sell stakes in its electricity production and distribution subsidiaries to the private sector under an asset management program, former Egyptera head Hafez Salmawy said. The program, which Salmawy says is already in place, seeks to overhaul the electricity sector to promote market competition and increase efficiency. The private sector is by law allowed to purchase up to 49% of any of EEHC’s subsidiaries.
Exhibit A: His statement came days after Electricity Minister Mohamed Shaker revealed that Blackstone Group’s Zarou and Malaysian company Edra Power Holdings had expressed interest in acquiring the three Siemens-built combined-cycle power plants inaugurated in July. The move could see the companies take on the responsibility of meeting debt repayments for the EUR 6 bn facilities, 85% of which was financed by foreign lenders.