Cairo’s plans to launch three new power plants in the next 12 months have taken a major step forward following the approval by three of the principal funding organisations of loans for the projects totalling about $400 million.

In late May, a $200 million loan from the African Development Bank for the construction of a second 750-MW combined cycle plant at Kureimat, 90 kilometres south of Cairo, has been initialled. The first tenders for the $350 million Kureimat II power station, which incorporates two 250-MW gas turbines and one 250-MW steam turbine, could be issued before the end of the year.

In early June, Kuwait-based Arab Fund for Economic & Social Development and the Kuwait Fund for Arab Economic Development each approved loans of $100 million towards the construction of a 650-MW steam power plant at Cairo West. The World Bank is reviewing an application from Cairo for a $250 million loan towards the construction of a 650-MW plant at El-Tebbine. The three projects are part of the Electricity & Energy Ministry’s 10-year generation expansion programme to add about 14,000 MW of new electricity generation capacity.

Japan’s Hitachi Corporationis the frontrunner for the contract to install a 250-MW steam turbine on the current $315 million project to build a 750-MW combined cycle power plant at Kureimat. Egyptian Electricity Holding Company (EEHC) received five bids for thecontract. Technical offers will be evaluated in July with an award expected in August. The consultant is the local/US Power Generation Engineering & Services Company(PGESCo – MEED 20:5:05).