A private firm based in Abu Dhabi is leading a consortium to build Egypt’s first coal-fired power plant, in Ayoun Moussa, in the Suez area.
The announcement was made by the chairman of Al Nowais Investments, Hussain Al-Nowais, who signed a memorandum of understanding with chairman of Egypt’s state-run power company EEHC, Gabr El-Desouky.
Al-Nowais informed Reuters that his investment company will provide 70 per cent of the cost of the power plant, without providing the estimated value of the power plant, funding details, or time frame of when the plant will be operational, adding that these details will be finalized soon.
Meanwhile, Al-Nowais revealed that there are ongoing discussions with investors in Singapore, China, South Korea and Egypt to fund the remaining 30 per cent of the power plant’s cost.
“Egypt has opened the door for private investment in its power sector and we want to be an early investor,” Al-Nowais said.
It was reported that HSBC has been chosen to be the financial advisor for the project and White & Case as the legal advisor. Italy’s Technimont is the technical consultant, and consultants have been appointed to assess the environmental impact of the project.
The plant will be built to meet the country’s acute power shortage problem, that has caused major blackouts in millions of homes this year. The new plant will provide a total of 3,960 megawatts of electricity.