LE18B targeted investments in electricity sector: Ministry

CAIRO – 4 July 2017: The Ministry of Electricity is preparing LE 18 billion ($1 million) investment plans in power transmission and distribution, spokesperson of the Ministry Ayman Hamza said Tuesday.

Hamza said in an interview with local television news channel ON Live that the investments will be directed to improve electricity service and capacity.

The ministry is undertaking maintenance works, with the worth of LE 4 billion, to existing power plans to improve their efficiency.

Egypt’s Ministry of Electricity is facing a challenge in meeting the costs of generating electricity amid increasing fuel demands for power plants and rising debts owed to government entities.

More funds are expected to be accessed by the ministry after it announces new tariffs in July, which is expected to hike 30-40 percent in FY 2017/2018, according to sources from the ministry.

Raising electricity tariffs started in July 2014, as part of a plan to reduce spending on subsidies. The application comes gradually as the Ministry announces new tariffs at the start of each fiscal year.