Siemens awarded record order from Egypt

12.06.2015
The signing ceremony was witnessed by Muhamed Shaker, Minister of Electricity and Energy of Egypt and Siemens CEO Joe Kaeser (front), the German Vice Chancellor Sigmar Gabriel and the Egyptian President Abdel Fattah El-Sisi (back). (Photo: Siemens)
The signing ceremony was witnessed by Muhamed Shaker, Minister of Electricity and Energy of Egypt and Siemens CEO Joe Kaeser (front), the German Vice Chancellor Sigmar Gabriel and the Egyptian President Abdel Fattah El-Sisi (back). (Photo: Siemens)

Siemens has signed contracts worth € 8 billion for high-efficiency natural gas-fired power plants and wind power installations in Egypt. The projects will add an additional 16.4 GW to the country’s national grid – from which 2 GW will be wind power. Siemens will therefore build a rotor blade manufacturing facility in Egypt.

The signing ceremony for this biggest single order ever for Siemens was witnessed in Berlin by Egyptian President Abdel Fattah El-Sisi and German Vice Chancellor Sigmar Gabriel. The orders expand on the memorandums of understanding announced at the Egypt Economic Development Conference in March 2015.

"With these unprecedented contracts, Siemens and its partners are supporting Egypt's economic development by using highly efficient natural gas and renewable technologies to create an affordable, reliable and sustainable energy mix for the country's future," said Joe Kaeser, President and CEO of Siemens AG. "The Egyptian people can count on Siemens. This was true more than 150 years ago when Siemens first started working in Egypt, and it remains our commitment today at this historic signing."

Beside three natural gas-fired combined cycle power plants on a turnkey basis, Siemens will deliver up to 12 wind farms in the Gulf of Suez and West Nile areas, comprising around 600 wind turbines and an installed capacity of 2 GW. The company will build a rotor blade manufacturing facility in Egypt's Ain Soukhna region, which will provide training and employment for up to 1,000 people. The facility is scheduled to go into operation in the second half of 2017.

Siemens' Financial Services Division 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.

Katharina Garus