Construction contract will be signed when Chinas president visits Cairo in January
Chinese contractor Shanghai Electric has received approval from the Egyptian government for plans to build a major coal plant in Egypt.
The conditional engineering, procurement and construction (EPC) contract will be signed when Chinas President Xi Jinping visits Cairo on 20-22 January, according to sources close to the scheme.
The contractor is working with Industrial and Commercial Bank of China (ICBC) to finalise financing for the plant, which is planned to have a total capacity of 4.6GW and require an investment of $6.4bn.
A memorandum of understanding (MoU) for the scheme was signed at the Egypt Economic Development Conference (EEDC) in Sharm el-Sheikh in March 2015.
Cairo has set a target of implementing 12.5GW of coal-fired power generation by 2022 as part of energy diversification efforts, and MoUs for 19GW of coal-fired facilities were signed at the EEDC.
The signing of the MoUs followed the issuance of an environmental specification for the construction and operation of coal-fired plants in early 2015. Egypts cabinet first approved the use of coal for power generation in April 2014.
| Egypt coal-fired projects | |||
|---|---|---|---|
| Developer / contractor | Model | Capacity (GW) | Value ($bn) |
| Orascom/Ipic | IPP | 3 | 3 |
| Al-Nowais Group | IPP | 2.6 | 3 |
| Acwa Power | IPP | 4 (2 phases of 2GW) | 7 |
| Tharwa Investments | EPC / BOOT | 6 (2 phases of 2GW) | 10.6 |
| Shanghai Electric | na | 4.6 | 6.4 |
| Dongfang | na | 2 | 3 |
| Ipic=International Petroleum Investment Company; IPP=Independent power project; EPC=Engineering, procurement and construction; BOOT=Build, own, operate, transfer; na=Not available. Source: MEED | |||
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