A Comparative Study of the Economic Feasibility of the Electricity Distribution Activity

  • El Mostakbal for Urban Development is developing a project that comprises: residential areas, regional service areas, and multiple service areas in the eastern extension of New Cairo City “Mostakbal City”.
  • In addition, El Mostakbal for Urban Development established a project for electricity distribution and obtained a license from the Egyptian Electric Utility Regulatory Agency.  In this regard, the company commissioned Environics to prepare a comparative study of the economic feasibility of the electricity distribution activity.
  • The scope of the study encompassed three phases:

The first phase (September 2020):

Environics reviewed what was done earlier to determine to what extent the 2015 feasibility study on electricity distribution activity met the expectations, whether there were any aspects of deviation & their causes, and whether these aspects were positive or negative.  Recommendations were provided to deal with these aspects.

The Second Phase (October 2020):

In light of the first report and discussions with specialists in El Mostakbal for Urban Development and the available data, an analysis of the Strengths, Weaknesses, Opportunities and Threats (SWOT) was carried out for the electricity distribution activity.

The Third Phase (May 2021):

In light of the SWOT analysis and the existing and applicable regulations and rules, an updated feasibility study was prepared.  The study addressed the electricity distribution project as a subsidiary company with a separate legal entity. The feasibility included: a technical study, a financial study, and a sensitivity analysis to examine the impact of some inputs, as well as the impact of the foreign exchange rate. Risks were reviewed, results were presented, and recommendations were provided.

  • In addition, a comparative summary was prepared for the financial indicators of the two studies: Badael’s and Environics, in regards to the Electricity distribution project in El Mostakbal City.  Environics provided the proper recommendations. (August 2021).

Related Projects