Egypt mulls selling power plants to private investors

Egypt is considering selling three recently built power plants to private investors, but talks are still at an early stage, Electricity Minister Mohamed Shaker said on Tuesday.

The plants, billed at the time as the world’s biggest, were built by Siemens AG in a 6 billion euro ($6.7 billion) deal signed in 2015. Egyptian President Abdel Fattah al-Sisi inaugurated them in July. “The negotiations are still in the early stages,” Shaker told Reuters by telephone. He declined to disclose further details.

Bloomberg reported on Monday that Blackstone Group and Edra Power Holdings of Malaysia had both expressed interest in taking over the plants and selling the electricity generated back to the Egyptian government, a step that would reduce public debt.

A person with knowledge of the power plants’ financing said a similar plan was broached last year to sell the plants either to investors or through an initial public offering, but nothing came of it.

 

Source: Reuters

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