FRANKFURT—Siemens AG received an order on Wednesday to build gas
and wind power plants in Egypt valued at €8 billion ($9 billion),
which the German company described as the largest single order in
its history.
Siemens signed contracts for the order, which will boost Egypt's
power production, with Egyptian President Abdel Fattah Al-Sisi on
Wednesday at Germany's Federal Ministry for Economic Affairs and
Energy. Siemens will deliver three ready-to-use gas-steam power
plants with a capacity of 4.8 gigawatts each. The plants, which
will go into operation in stages starting in the summer of 2017,
will have a total capacity of 14.4 gigawatts, Siemens said.
Loans for the order are "largely secured through export credit
insurers in Germany and Denmark," Siemens said without
elaborating.
In addition, Siemens is building up to 12 wind parks and about
600 wind turbines with a total capacity of 2 gigawatts at the Suez
channel and in the Western Nile region. The German industrial
company said that it will create up to 1,000 jobs in the North
African country, since the rotor blades for the wind plants will be
produced locally.
The contracts, based on declarations of intent signed last March
at the Egypt Economic Development Conference, are aimed at
increasing Egypt's power production capacity by 16.4 gigawatts, a
plus of 50% compared with current capacity.
Egypt's order for gas-steam power plants is of particular
importance for Siemens, which hasn't sold a single fossil
fuel-fired turbine in Germany since the country's exit from nuclear
and fossil-fuel energy.
Write to Archibald Preuschat at archibald.preuschat@wsj.com
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