Could energy deals warm relations between Egypt, Israel?
Speculation about Egypt possibly privatizing some of its electricity distribution companies is sparking fears of expanded normalization with Israel.
CAIRO — Egyptians have always been wary of normalization with Israel, and these concerns have intensified lately with talk that Egypt may privatize four electricity distribution companies and that Israeli firm IC Power Ltd. intends to buy some of them. Egyptian officials told Al-Monitor the reports are not true.
However, the New Arab news website published a story Sept. 8, citing undisclosed sources, with the headline “Normalization through privatization: An Israeli company gets ready to invest in Egypt’s electricity.”
Another article, published Sept. 4 by the Israeli daily Calcalist and also citing undisclosed sources, indicated Egyptian businessman Sadek Wahba has submitted a $1.3 billion bid to acquire IC Power through his New York-based private equity firm I Squared Capital Advisors LLC. Wahba, an Egyptian who resides in the United States, is the grandson of Youssef Wahba Pasha, who was Egypt’s prime minister from 1919 to 1920.
Commenting on Wahba's potential purchase of IC Power, telecommunications expert Nayel Shafei, who founded the online encyclopedia Marefa, posted Sept. 5 on Facebook, “I have said repeatedly since 2011 that Israel’s ultimate goal in the game of East Mediterranean gas is to sell electricity directly to consumers in Egypt." Those consumers wouldn't appreciate seeing the name of an Israeli company on their bills, he noted.
