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Egypt and Japan agree £71.6m Cairo electricity deal

Agreement is part of £178.9m loan to Egypt by Japan to improve electricity distribution across the North African country

Dominic Ellis
|Dec 1|magazine6 min read

Japan’s ambassador to Egypt, Noke Masaki, has attended the signing ceremony for an agreement that will oversee the upgrading of the North Cairo Electricity Distribution Company’s (NCEDC) distribution management system.

The agreement will also see the introduction of an advanced metering infrastructure within the company, a statement says.

Egypt’s power sector, which is vitally important for a better quality of life in the country due to its fast-growing population and economy, needs improvement and reinforcing. The Egyptian government has invested in projects that will provide power generation and transmission, focusing on its power distribution network.

In 2016, the Japanese government agreed to provide a loan of £178.9 million to Egypt in order to provide funding that will be used to improve the electrical distribution system in Alexandria, North Cairo, and the North Delta region.

Out of this loan, the North Cairo segment, which represents about £71.6 million, was signed on Monday, November 30, 2020, between the Egyptian Electricity Holding Company (EEHC), Toyota Tsusho Corporation (TTC) and Elswedy Electric T&D.

The project aims to improve the efficiency of the power distribution network by upgrading the infrastructure management system, while also introducing an advanced meter infrastructure, a statement says.

As a result of this upgrade, electricity blackouts are expected to reduce by one-fifth, while the collection of electricity charge will be more efficient. Electricity theft will also be prevented, the statement adds.

Furthermore, the reduction of distribution losses will also be more climate friendly.

Ambassador Masaki hails the Egypt-Japan partnership on this project, referring to TTC’s long-standing operations in Egypt as a main contractor, while Hitachi ABB has been a manufacturer of power distribution systems in the county for many years.

“Japan has long been supporting the pivotal sector for development in Egypt, which is power and energy, with the commitment of £1.5 billion until now.'

“Recent achievements include the construction of the Gulf Al Zayt Wind Power Plant along the Red Sea coast, and the Cairo North Power Plant,” he adds.

Ambassador Masaki also says that the two countries would continue to work closely together ‘for the purpose of improving the people’s lives through projects in the power and energy sector, including renewable energy for inclusive and sustainable development’.

Egypt's Minister of Electricity and Renewable Energy Mohamed Shaker adds his appreciation for Japan's long-term support of the domestic electricity and energy sector. He also states his desire for further enhancing bilateral cooperation between Egypt and Japan.

MenaFN report
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