Siemens has signed contracts worth €8 billion for high-efficiency natural gas-fired power plants and wind power installations that will increase by more than 50% Egypt's power generation capacity. The award is the single biggest order for Siemens in its history and expands on the memorandums of understanding announced at the Egypt Economic Development Conference (EEDC) held in Sharm El Sheik in March this year.
The projects, when completed, will add 16.4 GW to Egypt's national grid to support the country's rapid economic development and meet its growing population's demand for power.
With local Egyptian partners Elsewedy Electric and Orascom Construction, Siemens will supply on a turnkey basis three natural gas-fired combined cycle power plants, each with a capacity of 4.8 GW, for a total combined capacity of 14.4 GW. Each of the three power plants -- Beni Suef, Burullus and New Capital - will be powered by eight H-Class gas turbines.
The new plants will add power to the grid in stages. Plans call for an initial 4.4 GW to go online before summer 2017 and the full 14.4 GW to become available 38 months after the financing has closed and advance payments have been received. Once completed, the three power plants will be the largest gas fired plants in the world.
Siemens will also deliver up to 12 wind farms in the Gulf of Suez and West Nile areas, totalling around 600 wind turbines and with an installed capacity of 2 GW. It will build a rotor blade manufacturing facility in Egypt's Ain Soukhna region, which will provide training and employment for a workforce of up to 1000. The facility is scheduled to go into operation in the second half of 2017.
Siemens' Financial Services Division (SFS) has structured a financing package for Siemens' role in the contracts, including a tailored guarantee concept. The envisaged loan facilities, supported to a large extent by Export Credit Agency coverage in Germany and Denmark, will be provided by international and regional banks.
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