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Thursday, 31 March 2022

Offers roll in for the management of EV charging station company

Fourteen firms are vying to manage the state’s planned EV charging firm, Al Mal quoted Public Enterprises Minister Hisham Tawfik as saying. Bidding for the project closed at the end of last week.

Who’s bidding? Our friends at renewable energy giant Infinity have submitted an offer, a company representative confirmed to Enterprise. A consortium of MB Engineering EV charging subsidiary Sha7en (which recently signed an agreement to manage and operate 30 EV charging stations owned by defunct Revolta Egypt) and an unnamed French company is also in the running, Al Mal claims, citing unnamed sources. Saudi’s AlSharif Group and an unnamed Emirati firm have also submitted bids, the local outlet reports.

What they’re signing up for: The private sector partner selected to manage and operate the company will be locked in with a medium-term contract for its services, in exchange for a portion of the company’s net income. The operator will also be required to put up 25% of the JV’s capital. The company will set up 3k charging stations within 18 months around the country including in Greater Cairo, Alexandria and Sharm El Sheikh.

The company will be majority-owned by the private sector: Another 30% of the company will be offered to private sector firms, in addition to the 25% stake owned by the operator.

SFE, El Nasr + other state entities to split the remainder: The Sovereign Fund of Egypt, the Public Enterprises Ministry (via El Nasr Auto) and two other state entities will share the remaining 45% of the company, according to Al Mal. Each stakeholder will put up a corresponding portion of the venture’s initial EGP 150 mn capital, with another EGP 300 mn to be raised from local banks.

What’s next? The Public Enterprises Ministry is examining the offers. It will give priority to firms that have experience managing similar projects.

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