Egypt is mulling the possible initial public offering of its joint project with Siemens known as Egypt Megaproject, the country’s largest power plants.
“This offering is one of the most important projects in line with the objectives of the Egyptian state,” Ayman Soliman, the executive director of The Sovereign Fund of Egypt, said in a statement.
The three power stations, built by Siemens in July 2018 at a total cost of 6 billion euros ($7 billion), each generate 4.8 gigawatts of electricity, and are managed by Siemens under an 8-year contract with the Egyptian government.
Egypt's sovereign fund plans to acquire 30 percent of the power stations as part of the deal aimed at reducing the debt burden of financing the three power stations of the government, Soliman said in previous statements to Bloomberg.
The announcement followed a meeting with the prime minister Mostafa Madbouly to review the developments of the Fund’s major projects and explore the possibility of floating some companies of the National Service Projects Organization on the Egyptian Stock Exchange.
He added that the offering reflects the fund's main objective to create partnerships with the private sector, expand its contribution in economic growth, maximize the return on state-owned assets, and refinance state investments in order to ease the burden on the public budget.