Siemens is one of the world’s largest producers of energy-efficient, resource-saving technologies, whose links with Egypt go back more than 150 years.
To create a modern, sustainable energy infrastructure, the government ordered three state-of-the-art gas-fired power plants from Siemens. The scale of the project presented substantial engineering challenges. Construction of the plants at Beni Suef, Burullus and New Capital required transportation of more than 1.5 million tonnes of material from Germany and Europe to Egypt and 24,000 engineers and workers on the ground. “When you get this chance you cannot say no, because this is once in a lifetime,” says Laurenz Krause, lead engineer on the project for Siemens.
The government also turned to Siemens for financing. The company needed partners willing to take on the risks of financing a megaproject in an emerging market and who could raise funds within a very short timeframe.
Deutsche Bank’s long relationship with Siemens began in the early days of the bank and has become deeper and broader over time. Today it spans capital markets financing, trade finance, cash management, FX and more. The Middle East is important to Deutsche Bank as well. The bank has a longstanding presence in the region and has been a partner to Egypt since 1959.
As one of three lead banks for Siemens, Deutsche Bank helped organise an international consortium of lenders that contributed more than half of the EUR 6bn cost of the project. All stakeholders wanted to understand the potential effects of the plants on local communities and the environment. A full impact assessment by Deutsche Bank confirmed the safety and sustainability of the plants, which the bank continues to monitor.
As one of three lead banks we brought together an international consortium of lenders that raised EUR 3.5bnStefan Goetzinger, Deutsche Bank
The three new power plants have increased Egypt’s energy capacity by more than 40%. Siemens also trained 600 local engineers and technicians to operate and maintain the plants, because skills are important for Egypt’s future too.
Egypt now has a reliable energy supply that can power its prosperity. “This is a great example of how Deutsche Bank contributes to progress all over the world,” says Hatem Sabry, who’s responsible for corporate banking coverage in the Middle East and Africa for Deutsche Bank.