Egypt Signs $757m Loan with EXIM Bank, State Grid of China to build 1,210 km Lines

[Shotgunner51]

EETC signs for $757 loan with Export-Import Bank of China
Chinese State Grid to establish 1,210 km-long lines, government guarantee to be agreed within days

Mohamed Farag November 7, 2016

The Egyptian Electricity Transmission Company (EETC) has signed a $757m loan contract with the Export-Import Bank of China to finance the establishment of 1,210 km-long electricity lines.

Sources in the Electricity Ministry said that Chinese State Grid has begun the implementation of the lines in several locations, and has obtained the advance in the contract. The government guarantee agreement for the loan will be signed within a few days.

The Chinese company is handling the implementation of the project according to the EBC+ Finance system which includes establishing the project, its design, and implementation, as well as the collection of funds from banks. The Ministry of Electricity will handle the repayment of the loan to financing agencies.

The Ministry of Electricity and Renewable Energy has allocated EGP 11.4bn to support the unified grid for electricity transmission in order to cope with the anticipated overload in summer 2017.

The sources explained that contracting the establishment of three transmission stations has been completed, in addition to three mobile stations with a 220 kilovolt capacity worth $41m, in addition to EGP 330m in local components.

Cables will be established with capacities of 220 kilovolts, worth $22.1m, with local components worth EGP 1.5bn. This is in addition to 26 transmitters with a capacity of 175 megavolt amperes, at a cost of $39m, and EGP 24m in local components, plus 12 transmitters with 125 megavolt amperes worth $12m, and EGP 8m in local components.

The EETC has also contracted for establishing 100 transmitters with a 40-megavolt-ampere capacity worth EGP 400m, in addition to cells and cables of a 66-kilovolt capacity with investments worth $55m, and EGP 335m in local components.

According to sources, the EETC is working on supporting the electricity grid through establishing new lines and replacing older ones, as well as enhancing the lines’ quality through the use of new paths. Contracting was completed for cables with 66 kilovolt capacities to expand the grid by 57km and replace connectors with capacities of 330 kilovolt, in addition to expanding through the establishment of 30 cells to be installed in the transmitters.

http://www.dailynewsegypt.com/2016/11/07/eetc-signs-757-loan-export-import-bank-china/

 

[Shotgunner51]

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Greece’s power utility PPC announced on Wednesday that China’s State Grid Corporation (SGCC) has submitted the winning bid for a 24 percent stake in grid operator ADMIE, offering 320 million euros. PPC’s board of directors said a final decision will be made on November 24, during PPC shareholders’ general assembly.

SGCC is the world’s largest power company. It serves more than 1.1 billion Chinese consumers and operating grids in the Philippines, Brazil, Portugal, Australia and Italy.

Read more at http://www.wsj.com/articles/greeces...perator-admie-to-chinas-state-grid-1477935773


China State Grid Quietly Builds Mediterranean Power Network
Sunday, 10 August 2014 | MYT 5:59 PM

PARIS/HONG KONG/MILAN: The European Commission has long wanted the continent's power grids to work in unison for reasons of efficiency and supply security, so far to little avail, but a regional power network could soon be a reality, courtesy of State Grid Corporation of China.

While Europe's utilities have met hostility to cross-border forays and been outbid by infrastructure funds, State Grid, the world's largest utility by revenues, with its deep pockets and reputation for hands-off management, has had an easier ride, buying minority stakes in Portuguese and Italian grid operators and pursuing designs on Greece and Spain, too.

If all goes to plan, it would become the first utility to build a major regional electricity grid portfolio, a feat that the Commission had hoped Europe's big grid operators would have achieved in the five years since it forced the separation of the grids from power production to increase market competition.

For wholly state-owned State Grid, which distributes electricity to 1.1 billion people across 90 percent of China, the appeal of the consistent, regulated income from European power assets is obvious. A State Grid official familiar with its overseas strategy said projects abroad typically yield high single-digit to double-digit returns, compared with low single digits at home. Its relatively low yield requirements give it an edge over Western infrastructure funds and European sector peers. In a recent statement, an official in State Grid's international business department said it was actively investing in regulated electricity assets and realising steady returns.

As State Grid builds up its portfolio, it could start thinking about linking up its assets across the region; the ownership of several grids by one operator allows easier cross-country power-load balancing, so it doesn't get caught out by peaks in one area and can shift power within its own network rather than being forced to parlay with a competitor.

STRATEGIC POSITIONING

In 2012, State Grid bought 25 percent of Portuguese grid operator REN, then last month it entered Italy with a deal to buy 35 percent of CDP Reti for at least 2.1 billion euros ($2.8 billion).

CDP Reti owns 30 percent of gas transport group Snam and is set to receive a similar stake in power grid Terna.

State Grid, with Terna and Belgium's Elia, is also bidding for 66 percent of Greek grid operator ADMIE, sources told Reuters in May, and is interested in bidding for German utility E.ON's northern Spanish grid, which serves 650,000 customers and could sell for as much 1 billion euros, a source familiar with the parties told Reuters.

"After the recent investments of SGCC in South Europe, there is indeed a strategic positioning within the region," ADMIE Chairman and CEO Yiannis Yiarentis told Reuters.​

Patient and discreet, State Grid only invests where it is welcome, shying away from hostile bids, and has seized on the opportunities afforded by privatisations in cash-strapped southern euro zone countries. State Grid Executive Vice President Zheng Baosen told Reuters last year China was ready to invest further in European utilities "if the price is right".

In addition to Europe, it has made major investments in power grids in Brazil, the Philippines, Australia and Hong Kong. Its total overseas assets now exceed $23 billion, and the profits of its overseas operations rose to 3.2 billion yuan ($520 million) in 2013 from 800 million in 2009.

An official at a Brussels-based utilities lobby said Chinese utilities have huge ambitions in Europe and are sending countless missions to ask for advice on where to invest.

Besides China's grid operator, its power producers are also breaking into Europe. In 2011, China Three Gorges paid 2.7 billion euros for a 21 percent stake in Energias de Portugal, and EDP chief executive Antonio Mexia has said his shareholder is looking at other opportunities in Europe. In October, China General Nuclear Corporation and China National Nuclear Corporation agreed to take a joint 30-40 percent stake in an EDF-led consortium to build a 16 billion pound nuclear plant in Britain.

http://www.thestar.com.my/business/...d-quietly-builds-mediterranean-power-network/
https://www.yahoo.com/news/italy-agrees-sell-energy-grid-stake-china-202430213.html?ref=gs
http://www.reuters.com/article/us-italy-china-idUSKBN0FT1H020140724

 

[Rasengan]

Well done China. I hope your relationship with the Muslim world expands.

 

[Shotgunner51]

Well done China. I hope your relationship with the Muslim world expands.

Thanks bro! Bilateral relationship between China and Muslim world has always been very calm and pragmatic. Take Egypt as an example, we have "New Cairo" project, Suez Economic Zone, currency swap, syndicated loans (in conjunction with IMF) etc., all related to well being of each and every Egyptian. In the long run, both nations can continue to expand on infrastructure, engineering, industrial transfer, technology transfer as well as financial investment. All the best to Muslim world!

On topic, China has a vision to build a Mediterranean power network, Egypt is most welcome to become an integral part of this vision.

 

[Rasengan]

Thanks bro! Bilateral relationship between China and Muslim world has always been very calm and pragmatic. Take Egypt as an example, we have "New Cairo" project, Suez Economic Zone, currency swap, syndicated loans (in conjunction with IMF) etc., all related to well being of each and every Egyptian. In the long run, both nations can continue to expand on infrastructure, engineering, industrial transfer, technology transfer as well as financial investment. All the best to Muslim world!

On topic, China has a vision to build a Mediterranean power network, Egypt is most welcome to become an integral part of this vision.

The example you have given above in regards to Egypt proves that China is more respected in the Muslim world than the Americans. This is because you focus on development rather than destruction and division. In the coming decades I wouldn't be surprised if a number of Chinese SOEs invest heavily in infrastructure projects across the Muslim world. I know someone from the CCPIT who is already doing that job in Indonesia with great success. There are three very important dear places in my heart. The first is Mecca because the Holy Prophet was born their and it houses the Kaaba. The second is Pakistan because it's my country. Third is of course China since most of my best friends live their and I enjoyed visiting so many different cities. So I would love to see trade between China and the Muslim world.