Elec­tric­ity Min­istry agrees with Acwa Power to es­tab­lish power plant in Luxor

The Daily News Egypt - - Front Page - By Mo­hamed Farag

The Min­istry of Elec­tric­ity has agreed with the Saudi com­pany Acwa Power to launch a power plant with a ca­pac­ity of 2,250 MW in Luxor gov­er­norate.

Ac­cord­ing to sources in the min­istry, the new plant was sup­posed to be es­tab­lished in Dayrut city in Be­heira, but the lack of trans­mis­sion sta­tions in the re­gion forced the govern­ment to move the project to Luxor.

The sources told Daily News Egypt that the min­istry ne­go­ti­ates with Luxor gov­er­norate to al­lo­cate the re­quired land for the project on an usufruct sys­tem for 25 years.The Cab­i­net is­sued a state guar­an­tee for the Saudi com­pany to build the new plant.

Un­der the state guar­an­tee, the govern­ment is obliged to pay the com­pany’s dues if the Min­istry of Elec­tric­ity fails to pay.

The sources added that the min­istry is ne­go­ti­at­ing with the com­pany to agree on the new site of the project and the dif­fer­ent items of the con­tract, not­ing that weekly meet­ings with of­fi­cials at the Egyp­tian Elec­tric­ity Hold­ing Com­pany are held to com­plete the agree­ment.

The sources said that the min­istry will sign four agree­ments with Acwa Power re­gard­ing pur­chas­ing the en­ergy pro­duced by the project as well as or­gan­is­ing the gas sup­ply, state guar­an­tees, and the usufruct sys­tem.The min­istry seeks to com­plete the agree­ments in the mid­dle of next year.

Hassan Al­lam Con­struc­tion will pro­vide 25% of to­tal investments to Dayrut power plant, while Gen­eral Elec­tric (GE) and Chi­nese Sepco will sup­ply and in­stall all equip­ment for the project.

The investments al­lo­cated for the new power plant are es­ti­mated at $2.2bn, and will con­sist of three units with a ca­pac­ity of 750MW each, op­er­at­ing on a com­bined cy­cle sys­tem.

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