Rédaction Africa Links 24 with Egypt Independent
Published on 2024-02-07 09:46:51
Egypt is set to close the door on any final offers to buy shares of the National Company for the Sale and Distribution of Petroleum Products (Wataniya) within 48 hours, as announced by Minister of Planning Hala al-Saeed. This move indicates the imminent announcement of the winner of the long-awaited deal, according to a report by Bloomberg.
During a celebration in Cairo on Tuesday, Saeed explained to the agency that the government plans to finish selling wind power plants in Jabal al-Zeit before the end of March. She also stated that the plan to rationalize expenditures will not affect the expectations for economic growth during 2023-2024, projecting a growth rate of three percent.
The government’s expectations for economic growth during the current fiscal year align with those of the International Monetary Fund.
Wataniya is owned by the National Service Projects Organization (NSPO) of the Egyptian Armed Forces, which also holds a 20 percent stake in Taqa Arabia, purchased last July for LE1.629 billion. The companies Taqa Arabia, ADNOC of the UAE, ENOC of the UAE, and Petromin of Saudi Arabia are competing to acquire Wataniya shares.
The Jabal al-Zeit wind energy projects have a total capacity of 580 MW, consisting of stations Jabal al-Zeit 1 (240 MW), Jabal al-Zeit 2 (220 MW), and Jabal al-Zeit 3 (120 MW). These projects were implemented in cooperation with the Spanish government.
It is expected that the imminent closure of the final offers for Wataniya shares will mark a significant milestone in Egypt’s energy sector, with potential implications for both domestic and international stakeholders. The sale of wind power plants in Jabal al-Zeit is also indicative of the country’s commitment to furthering its renewable energy capabilities and reducing dependency on traditional fossil fuels.
The government’s emphasis on rationalizing expenditures while maintaining expectations for economic growth demonstrates a balanced approach to economic management. By aligning with the IMF’s growth projections, Egypt is signaling its commitment to economic stability and sustainable development.
Furthermore, the involvement of international companies in the bid for Wataniya shares reflects the attractiveness of Egypt’s energy market to foreign investors. This competition is likely to drive innovation and efficiency within the sector, ultimately benefiting the country’s energy infrastructure and economy as a whole.
As Egypt moves closer to finalizing these pivotal deals, all eyes are on the outcome and the subsequent impact it will have on the country’s energy landscape. The successful completion of these transactions has the potential to position Egypt as a key player in the regional energy market and attract further investment in the sector.
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