West Damietta power project no longer IPP

10 August 2011

Egypt to tender engineering, procurement and construction contract for project

Egypt’s Electricity Ministry is developing an engineering, procurement and construction (EPC) power plant at West Damietta in Egypt.

The project was originally intended to be an independent power project (IPP) and the ministry was in negotiations with Kuwait’s Kharafi National to build the 750MW combined cycle power plant. Kharafi has been awarded an EPC contract instead.

According to a source close to the project, the IPP plan has been scrapped due to the urgency of the country’s need for power. A further two power units are planned for West Damietta, which may be developed as IPPs or as EPC projects.

Sources close to the government have stressed that another planned power project at Dairut is still set to be tendered as an IPP. The tender has been postponed due to the protests that erupted in Egypt in January.

A total 1,500MW of additional capacity has been brought online this year in spite of the unrest. Kharafi National completed the construction of two 750MW gas-fired power plants at Damietta and Shabab in Egypt on schedule in July (MEED 5:1:11).

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