In North Africa, the Egyptian Ministry of Electricity and Renewable Energy is currently in negotiation with four consulting firms to prepare reports on the construction of four substations in Benban, Aswan – the four substations will each receive solar generated power.
With investors having paid the first and second installment of the cost-sharing agreement, the ministry has decided to postpone the third for 30 days until completion of the contract with the consultant, Daily News Egypt reported.
A ministerial source told local media that investors are supposed to pay the value of the third installment of the agreement, which amounts to $10 million this month.
In addition to having paid the first two installments, the source added that those firms have provided letters of guarantee from the bank for the remaining amount so that the Egyptian Electricity Transmission Company (EETC) can repay the value of the substations.
Egypt: cost-sharing agreement for substations
Local media explained that cost-sharing is one of the five agreements that interested investors sign for, for the development of new and renewable energy feed-in tariff schemes.
According to the ministerial source, cost-sharing includes dividing the expenses of connecting solar power plants with the relevant infrastructure in the Benban region by using the feed-in tariff.