Ministry of Electricity signs $4.5B deal with Al-Nowais Investments Group
CAIRO: Egypt and Abu Dhabi-based Al-Nowais Investments Group signed an energy deal worth $4.5 billion Sunday to construct Egypt’s first coal-fired power plant in the Suez area, Youm7 reported.
The agreement was inked on the sidelines of the Egypt Economic Development Conference that kicked off Friday and scheduled to close Sunday.
“The environmentally friendly power plant, producing 2,460 megawatt of energy, will not only sustain economic development but will also position Egypt as one of the global leading countries in the field of renewable energy,” Electricity and Renewable Energy Minister Mohamed Shaker was quoted by Youm7.
The deal was signed between Hussein a-l Nowais, chairman of the UAE Company and Gabr el-Desouky, Chairman of the Egyptian Electricity Holding Company (EEHC).
During the past four years, Egypt has been experiencing serious energy crises with parts of the country facing regular power cuts every day thus; private investments in renewable energy sources are badly needed to make up the country’s tired power grid.
Chairman of the Egyptian Electricity Transmission Company Ahmed al-Hanafy signed another energy deal worth $1.5 billion Sunday to construct another coal-fired power plant in the Delta governorate of Kafr el-Sheikh, according to Youm7.
On the first two days of the conference, the Egyptian Ministry of Electricity and Renewable Energy signed $21.2 billion worth of deals with a number of international companies to develop the national electricity network and build new power plants operating with various sources.
The first agreement was signed with Germany’s Siemens representative Lisa Davis with an estimated investment of $10 billion. Four memoranda of understanding to establish power plants, with a total production capacity of 6.6 gigawatts, were signed Saturday with German companies in the presence of the German Minister for Economic Affairs and Energy Sigmar Gabriel.
According to one of the four memoranda, a combined power plant will be established in Beni Sueif (Upper Egypt) with capacity of 11.004 megawatts. The second memorandum includes establishing five other combined power plants in Noubarya of Beheira governorate (Delta), in Sedi Kirir in Alexandria, in Southern Cairo, in Qena (Upper Egypt), and in Kafr el-Dawwar with total of 6,600 megawatts.
ACWA Power International of Saudi Arabia and Masdar of UAE are also scheduled to sign a MoU with the Egyptian government to build a power plant in the Red Sea with an investment estimated at $3 billion, according to Youm7.