Mitsubishi Hitachi signs ¥12B deal with Egypt for gas turbines



Thu, 10 Aug 2017 - 01:04 GMT


Thu, 10 Aug 2017 - 01:04 GMT

 Power plant- Bhumann via Pixabay

Power plant- Bhumann via Pixabay

CAIRO – 10 August 2017: Mitsubishi Hitachi Power Systems (MHPS) has signed a contract Wednesday with Cairo Electricity Production Company (CEPC) to develop two gas turbines for Cairo North power plant.

The project will work to improve efficiency of production units, increase capacity of the plant and reduce fuel consumption, head of the Egyptian Electricity Holding Company (EEHC) Gaber al-Desouki said in a statement from the Ministry of Electricity.

Funded by the Japan International Cooperation Agency (JICA), the loan’s value is ¥12 billion as part of their Official Development Assistance Loans (ODA), Desouki said.
The loan’s term is 40 years with 10 years of grace period.

Egypt’s electricity sector witnessed a surge in its investments year-on-year, where it recorded 4.3 percent in Q3 of 2015/16 and hiked to 15.5 percent in Q3 of 2016/17.

The Electricity Ministry 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.

To address this, the ministry introduced new

power tariffs

with price increases ranging between 15-36 percent depending on the consumption bracket.



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