Are state energy firms getting EGP 20 bn in loans to address the energy crisis?

Loans to keep the lights on: State utilities firm the Egyptian Electricity Holding Company (EEHC) and state oil company the Egyptian General Petroleum Corporation (EGPC) have each borrowed EGP 10 bn from local banks to shore up our power infrastructure and fuel supplies, according to separate reports from Asharq Business and Al Shorouk. The loans come as the country remains in the grip of a power crisis, with the government implementing a schedule of rolling blackouts and other power-saving measures after a heatwave triggered a surge in electricity demand.

#1- Power plant maintenance: EEHC reportedly borrowed EGP 10 bn from the National Bank of Kuwait Egypt (NBK Egypt) to carry out maintenance on its power plants, Asharq Business reported yesterday, citing two sources it says are familiar with the matter.

#2- Mazut imports: A consortium of 13 banks plans to sign a 10-year loan agreement worth EGP 10 bn with EGPC this month to import mazut, Al Shorouk reported yesterday, citing banking sources familiar with the matter. The consortium is led by the National Bank of Egypt and Banque Misr.

REMEMBER- The government is shouldering the cost of an additional USD 250-300 mn worth of mazut imports by the end of August after exhausting its supplies of the heavy oil. The first emergency shipment arrived last week.