Joint venture is proposing to build and finance large coal-fired facility
A joint venture of US GE and Chinas Harbin Electric has submitted a proposal to Egypt Electricity Holding Company (EEHC) to develop a 6,324MW coal-fired power plant in Egypt.
According to a source familiar with the scheme, GE will supply the equipment while Harbin Electric will provide engineering, procurement and construction (EPC) services and provide financing from China.
Localisation will play a key part of the teams proposal; the pair are planning to have a localisation rate of more than 50 per cent after the final phase.
The proposed EPC+F (EPC plus financing) scheme is one of several major coal-fired power plants planned in Egypt, as Cairo seeks to diversify its fuel mix for power generation.
MEED recently reported that a joint venture of the local Elsewedy Electric and Japans Marubeni is expecting to complete a feasibility study for a coal-fired power plant in December this year.
The team is conducting the study in the western Matrouh governorate on the Mediterranean coast.
The consortium signed a memorandum of understanding (MoU) with Egypts Ministry of Electricity and Renewable Energy in March for the study. Following its completion, the joint venture is planning to submit technical and financial offers to the ministry in 2017.
The plant will be developed in two phases, with each phase expected to have a capacity of 2,000MW.
Egypt is planning for coal-fired power generation to account for 15 per cent of installed capacity by 2030, which would make it the second-largest single technology of fuel for power generation after gas and natural fuel oil plants.
MEED reported in February that EEHC was making progress with five coal-fired power plants.
Harbin was recently awarded a contract to build the GCCs first major coal power plant at Hassyan in Dubai.
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