Planning Minister reviews the targets and investments in the electricity and transport sectors in FY 23/2024

Dr. Hala El-Said, Minister of Planning and Economic Development, discussed today the report of the Financial, Economic, and Investment Affairs Committee regarding a draft law approving the economic and social development plan for the fiscal year 2023/2024 before the plenary session of the Senate, in the presence of Counselor Abdel Wahhab Abdel Razek, Speaker of the Senate, and members of the Council.

During her speech, El-Said indicated that concerning the electricity and renewable energy sector, the plan includes investments up to EGP 81.4 billion for 2024/23, of which public investments amount to EGP 69.4 billion or 85% of the total. According to the plan’s estimates, these investments will achieve an output of EGP 203 billion, which is an increase of about 21% over the value of the expected output in 2022/2023, which amounts to EGP 169 billion.

She added that generated electric energy is expected to rise to reach 228 billion kWh in the year of the plan. In addition, the proportion of renewable energy in total energy will increase. It has increased to 11.8% in 2023/2024 in comparison to just 8.8% in 2018/2019.

El-Said noted that the plan focuses on securing electrical supply to cover all areas of reconstruction and development. This includes East Owainat, North Sinai, and land reclamation projects in Toshka and the New Delta. Electricity, as it moved to the (77th) position in 2019 compared to its occupation of the (121st) position in 2014, with the expectation of upgrading to the (75th) position by 2024.

She pointed out that the targeted works also include, during the year 2024/23, the replacement of overhead lines with underground cables with a length of 400 km, transferring and diverting the path of the electrical network that conflicts with the national road development project with a total length of 100 km, as well as completing the construction of the medium voltage electrical network and the construction of the Dabaa power line within the framework of the works of the first phase of the nuclear plant in Dabaa.

In the field of diversifying energy sources, El-Said explained that the plan includes the completion of the wind power plant project in the Gulf of Suez with a capacity of 250 megawatts, the completion of the implementation of the project to establish a power plant using photovoltaic cells in Hurghada (20 megawatts) and Zaafarana with a capacity of 50 megawatts, and the completion of the preparation of lands designated for energy projects. 

On the level of regional and international cooperation in the field of energy, El-Said stressed that the plan is keen to continue to intensify efforts aimed at strengthening Egypt's position as a platform for energy trade and circulation in light of the advantages that Egypt enjoys from its strategic location and the abundance and readiness of the infrastructure in terms of lines and networks, within the framework of the (Euro) project. It has a capacity of 2000 megawatts, which can be increased to 3000 megawatts, which connects the electricity networks of Egypt, Cyprus, and Greece.

Concerning the transport sector, El-Said said that the total investments directed to this sector are estimated at EGP 321 billion in 2024/23, compared to expected investments in the range of EGP 247 billion in the previous year, an increase of approximately 30%, and public investments account for about 84% of the total investment, including equivalent to EGP 268 billion. It is estimated that the sector's output will reach about EGP 864 billion in the year of the plan. This is at a growth rate of 22% from the previous year.

El-Said referred to the most important road projects to be completed during the year of the plan, including the development of the Cairo-Ismailia agricultural road from the regional ring road with a total length of 53.5 km, the construction of the axis of reconstruction from Alexandria to the northwest coast, in addition to the duplication of the 6th of October/Al-Wahat road with a length of 270 km, and the construction of a southern road. Fayoum/Al-Wahat at a length of 125 km, in addition to completing the Assiut/Sohag/Red Sea dual carriageway at a length of 145 km.

As for the road projects that are to be completed during the year of the plan, El-Said explained that the most important of them are the development of the Cairo-Assiut Western Desert Road, the development of the Wadi El-Natrun-Alamein Road, the expansion and development of the Suez-Genifa-Ismailia-Al-Moahada Road, the development of the Farafra-Dakhla Road with a length of 325 km, and a road track. Toshka / East Al-Awainat, with a length of 359 km, and the Dakhla Oasis / East Al-Awainat road, with a length of 375 km.

Concerning river transport, El-Said indicated that the plan includes several projects to complete the purification and development of the navigational course along its extension from Cairo in the north to Aswan and Wadi Halfa in the south, as well as the development of the navigational course in both the Buhari winds and the Nubaria canal to link the port of Alexandria with the river transport network, as well as the development of the navigational course. 

In the field of railways, El-Said mentioned examples of the targeted projects for the year 2024/23, including the completion of the development of construction works for 1102 slides, the implementation of the double work of the Imbaba Al-Manashi / Al-Qabbari line in Alexandria with a length of 227 km, and the rehabilitation of the construction of the Al-Fardan / Bir Al-Abd / Al-Arish / Rafah / Taba line. 

In the field of land and dry ports, El-Said explained that the plan aims to support six ports while linking them to the central monitoring network of the General Authority for Land and Dry Ports. Major overhauls of marine units are also underway. Among the targeted works - for example - in the port of Safaga, is the construction of a dock and a station for handling containers, and dredging the shipping lane. Concerning the port of Alexandria, the most important works include the construction of a multi-purpose terminal and a logistical area on 273 acres, an electric transformer station in the port, and the work of a link to link the port of Alexandria with the international coastal road. 

In the field of urban development, El-Said explained that it is intended to direct investments of about EGP 273 billion, or 16.5% of the total investments of the plan for 2024/23, and related to water and sanitation projects, EGP 119 billion, and real estate activities of EGP 102 billion.

 Moreover, El-Said explained that the indicators of international competitiveness related to infrastructure indicate Egypt’s progress from 100th place in 2014 to 52nd place in 2019, and the plan expects progress to 50th place in 2024 in light of the state’s keenness to continue developing public utility services. In this context, the overall picture can be monitored. 

In the field of social housing, El-Said explained that the plan aims to build about 60,000 units, complete the construction of 116,000 units, start implementing 130,000 units, transfer and transfer drinking water and sanitation facilities that conflict with national projects for roads, bridges, electric trains, monorail, and subway, and complete a replacement plan. 

El-Said referred to the most important local development projects included in the 2024/23 plan, including the development of the axes of some roads in North and South Sinai and the Abu Rawash area in Giza, the development of the lighting system in Luxor, Aswan, Halayeb and Shalateen, the development of the civil protection system in Cairo, Fayoum, and Assiut, and the construction and completion of car and pedestrian bridges in Beni Suef and Qalyubia.