21 Apr 2020
Posted in Construction
Construction energy market in Egypt still hot in spite of COVID-19 delays, says GlobalData
Following the news that General Electric has completed construction of a EGP100m control and monitoring center at the Benban solar complex facility;
Yasmine Ghozzi, Economist at GlobalData, a leading data and analytics company, offers her view:
“The Benban Solar Energy Complex in Aswan is the largest solar energy project in the Middle East and North Africa (MENA) region and includes 32 solar power generation plants with a production capacity of 1,465MW, which is equivalent to 90% of the energy produced from the High Dam. The project aims to provide Egypt with the clean energy needed to achieve sustainable economic growth.
“Although the opening of the new control and monitoring centre has been postponed until Q3 2020 due to the COVID-19 outbreak, the project’s completion is a positive outturn for the construction industry in Egypt, which has been beset by project delays and suspensions and employment cuts.
“GlobalData has cut its growth rate estimate for Egypt’s construction sector to 7.9% in 2020, given the disruption caused by COVID-19, but the country’s government is still pursuing investments in the energy market as the country’s economic development hinges on the energy sector, which represents 13.1% of GDP.
“To meet burgeoning energy demand, the government has pursued an energy diversification strategy, known as the Integrated Sustainable Energy Strategy (ISES), to 2035 to ensure the continuous security and stability of the country’s energy supply. It is unlikely that short-term disruption will derail this strategy. For example, although the Egyptian Electricity Transmission Company (EETC) has postponed the tender closing date for the contract to build the infrastructure to facilitate electricity interconnection between Egypt and Saudi Arabia, it has stated that the successful bidder will be announced in June. The estimated budget for the interconnection line is US$1.6bn, and it paves the way towards establishing a unified Arab electrical network.”