However, while it has won a significant foothold in some small regional markets, other countries, such as Syria, Saudi Arabia and the UAE, have proved more difficult. The question facing the company is whether its promise to train locals is enough of an incentive for it to win contracts ahead of larger international rivals.

Pgesco was established as a joint venture of the Electricity & Energy Ministry, the US' Bechtel and the Arab African International Bank, since replaced by Commercial International Bank. Over the past 10 years, its revenues have grown tenfold to more than $100 million.

Through its affiliate Arabian Consulting Engineering & Services Company (Acesco), Pgesco is also strong in Libya. Acesco was set up in 2003 to replicate the Pgesco model. It is a joint venture of the General Electricity Holding Company of Libya and the Egyptian Electricity Holding Company, part of the Electricity Ministry. Pgesco provides all the senior management team, as well as technical support and technology.

With the experience it has gained in these two markets, Pgesco plans to expand. The company is responsible for the addition of 1,500 MW of electricity a year in both Egypt and Libya. Its aim is to manage the addition of 10,000 MW a year across the region. 'In Egypt we are working well, in Libya we are on the right track and we are in the process of penetrating the power market in other countries in the region,' says Elgawhary.

In Yemen, Pgesco is drafting an agreement for a new company, which will include the Public Electricity Corporation, the local Co-operative & Agricultural Credit Bank and the Egyptian Electricity Holding Company.

However, attempts to implement a similar model in Syria have stalled. In markets dominated by Western contractors, such as the UAE and Saudi Arabia, the company is finding the situation difficult.

'We are trying to establish an existence in the UAE,' says Elgawhary. 'In Saudi Arabia, the market is not that smooth because they hire entrenched European consultants all the time and we have to demonstrate our added value to be considered. And the only way to do that is providing technology transfer.'

Pgesco sees this as a strong selling point in a region where governments are keen to increase the number of local nationals in work. 'We are providing services at a lower cost, but this not the key,' says Elgawhary. 'The key is that we are training and getting people up to the level of international consultancy, which is an advantage for the country.'

In Egypt, the strategy has been a success. When the company began operating in 1993, the ratio of expatriate to national staff was one to four; now it is one to 15.

'The design of power plants, which used to be done by foreign contractors and consultants, is now done by Egyptians,' says Elgawhary. 'This led several countries in the region to consider this model for promotion. We go there with a limited management scope, train locals and work on the development of know-how in the local market.'

However, Elgawhary says Pgesco plans to start small, and that larger contract wins will have to wait. 'This is especially important with a client that is used to hiring foreign consultants,' he says. 'They have to become familiar with us, and we have to be familiar with them.'

Once it has established a presence, the company could expand into independent power projects. 'A lot of people have appro