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Minister of Finance : We are assiduous in adopting the project that enables Egypt to use renewable energy and achieves extreme fuel savings


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News Date: 5/26/2014 12:00 AM  Minister of Finance : We are assiduous in adopting the project that enables Egypt to use renewable energy and achieves extreme fuel savings 
 We are in the process of issuing  two decrees to oblige advertising agencies to use the solar energy for a grace period …. While the other decree shall prohibit the government from the  purchase of any non-energy –saving equipments

 

 Minister of Finance , Mr. Hani Kadri  Demian , assured that the Ministry and the government  are assiduous  in turning  into using smart and saving lighting   systems and renewable energy in government buildings. To achieve the same, we still need a comprehensive vision including streets, roads and residential areas and also a deliberated ,integrated and contractual system.

  The Minister stressed on the ministry’s readiness to allocate the funds needed to finance  a comprehensive  national project for  saving  lighting through  turning  into the  solar energy ,as much as possible .

  During his meeting with the head of The New and Renewable Energy Authority, Dr. Shaaban  Khalaf and the representatives of the Ministry of Electricity and the Renewable Energy Authority , The Minister asked to conduct  studies concerning transforming governmental buildings , public enterprises and roads all over the country from using the traditional lighting systems into the smart lighting systems through the solar energy as well as the other renewable energy sources that offered in more than scenario ,in order to account the required costs once  the government will finance – through the Ministry of Finance- and once the private sector would finance against  a portion of the savings resulted from electricity .  

The Minister suggested creating the economically and financially appropriate concession agreements of such  important transformation. As it is  possible to offer  the project as a package or many packages (lots). Whereas the product is electricity, therefore the exchange  methodology should be  electricity . I don’t recommend  offering a building against a building or a road against a road , as the largest offers  means the government’s strongest negotiation power ,consequently low costs .

  The Minister declared that he intends to decide to prohibit  purchasing any non saving - energy equipment on the government level , as well as he also in the process of  issuing a joint ministerial decree with the Minister of Electricity and the Minister of  Administrative and  Local  Development obliging  the agencies of the  road advertisements concession or these want to gain this concession to use the solar energy in lighting the road ADS ,and granting a suitable grace period for the agencies of the existing ADS to adjust their arrangements in accordance  to such  technical vision .

  The Minister  indicated that  the Government Services Authority should take part in this transformation process as it could change the government procurement system to be compatible with the transformational plan. Whereas the authority shall be responsible for issuing binding  instructions to all state entities preventing the non- saving or intensive  consumption of electricity .

  The Minister said that there is no alternative solution than using the smart lighting systems  and the LED lambs, if it is impossible to use the solar energy. He also declared that we will realize great benefit in case of using the solar system in the street lighting,  indicating to the data  issued  by the Ministry of  Electricity demonstrating that the streets and roads lighting constitute the ratio of  4.5 % of electricity consumption .

  The Ministry of Electricity  and Renewable Energy Authority’s representatives asked the Ministry of Finance for providing the necessary funding to implement the first phase of the solar energy power station  on the government buildings covering    equipping  costs of 50 government buildings of 15 ministries estimated at 27.8 million EGP. as a primary investment financing for the project owned by the state ,consequently  it should be borne  by the state  before adopting transferring the lighting systems to smart and  saving systems  by contracting with the private sector .

Changing the meeting trend resulted in the  agreement  to hold another meeting to discuss the proposals to compensate the  private sector if it finances the required investments at the government level, or the government finances the costs in case it is for the best use of  public monies.

 

Browse alsoMinister of Finance: 1.17 billion EGP. from general budget to fund wages of the workers in spinning and textile sector
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Minister of Finance : We are assiduous in adopting the project that enables Egypt to use renewable energy and achieves extreme fuel savings