Saudi-based Acwa Power has obtained the green signal from Egypt’s Ministry of Electricity to establish a power plant in Luxor with a capacity of 2,250 MW. The cost of the power plant is estimated at $2.2bn, a report said.
The ministry negotiated with Luxor governorate to allocate the required land for the project on a usufruct system for 25 years, reported Daily News Egypt.
Under the state guarantee, the government is obliged to pay the company’s dues if the Ministry of Electricity fails to pay, it added.
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 report said, citing sources.
According to Tradearabia news report, 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 new power plant will consist of three units with a capacity of 750MW each, operating on a combined cycle system.