REQUEST FOR EXPRESSION OF INTEREST: IMPROVING FINANCIAL PLANNING AND FORECASTING MODELING FRAMEWORK OF THE EGYPTIAN ELECTRICITY HOLDING COMPANY

The Ministry of Electricity and Renewable Energy (“MoERE”) of the Arab Republic of Egypt has received a financing from the Agence Française de Développement (“AFD”) and intends to use part of the funds thereof for payments under the following project: Improving Financial Planning and Forecasting Modeling Framework of the Egyptian Electricity Holding Company.
In October 2016, the Government of Egypt (“GoE”) has adopted the Integrated Sustainable Energy Strategy (ISES) 2035 to modernise the energy sector and increase the renewable energy (“RE”) penetration in the energy mix. This strategy has set the RE targets of 20% of the electricity mix by 2022 and 42% by 2035.
Within this context, the AFD has agreed to allocate a Grant in a maximum aggregate amount of one million five hundred thousand Euros (EUR 1,500,000) to support the MoERE, the Egyptian Electricity Holding Company (“EEHC”), and the Egyptian Electricity Transmission company (“EETC”) in achieving the objectives of the ISES 2035 and developing of the Egyptian Energy Sector. Accordingly, the grant has specified three major targets, (i) enhancing the governance of the energy sector, (ii) optimising the energy use, and (iii) improving energy supply. This Grant is managed and supervised by a project management team within MoERE for the benefit of EEHC and the relevant affiliated companies including EETC.
EEHC is an Egyptian joint-stock company serving over 37.9 million customers via six generation and 9 distribution companies distributed across Egypt. In addition, the transmission system operator, EETC, is also among the affiliated companies of EEHC. In the framework of the Electricity Law No. (87), EEHC aims to promote its production and distribution companies for commercial and independent operation. To achieve this, EEHC is committed to enhancing legal, organisational, commercial, financial, and economic conditions of its production and distribution companies by setting and implementing a strategic financial restructuring plan, and powerful corporate governance and risk management system.
The Services of the Consultant shall consist of and not limited to the following:
• Review existing financial planning status-quo in selected production and distribution companies and in EEHC, and make recommendation for enhancement;
• Design financial model for EEHC and its affiliated companies;
• Review current EEHC and its affiliated companies’ financial statements’ structure and propose any modifications (compatible with the structural changes required by the Electricity Law No. 87);
• Provide a capacity building program on financial modeling for the financial planning department;
• Assist EEHC financial planning department in developing different scenarios and scenario analysis of financial restructuring plans in line with the tariff reform plan.

The MoERE of the Arab Republic of Egypt hereby invites Applicants to show their interest in delivering the Services described above.