Chairman of Suez Canal Economic Zone (SC Zone) Ahmed Darwish signed a letter of intent with Singaporean company Hyflux Ltd to establish a electricity power plant and a water desalination station in Ain Sokhna port.
The reported value of the tenative agreement is $500m. The capacity factor of the power station will be 457 MW while the water desalination station will have a capacity factor of 150,000 cubic metres.
The construction period for both projects is estimated to be between 20 and 28 months. Darwish said the contract will be signed after legal revisions. However, he did not specify the specific date for completion of the revisions.
Mitsubishi Matoto and Toyota Tsusho also began conducting feasibility studies for the establishment of power plants and water desalination stations in the zone.
In an interview with Daily News Egypt, Darwish said several memoranda of understanding (MOU) were signed with Russia and a Spanish alliance to develop the East Port Said industrial zone.
The size of projects that the Spanish coalition is looking to implement has an initial value of €8bn over at least five years, according to Darwish.
In a press conference in February, Darwish announced that negotiations with engineering and consulting firms will develop the infrastructural work to have a “smart industrial logistic zone”.
Darwish believes the SC Zone can be one of the main players in the world trade movement, which includes Jebel Ali in the UAE, Panama, Shanghai, and Hamburg.
The Suez Canal Area Development Project was announced in 2014 and includes six ports: East Port Said Port, West Port Said Port, Al-Arish Port, Al-Adabeya Port, Ain Sokhna Port, and Al-Toor Port.
All ports are under the jurisdiction of the SC Zone, which is operates autonomously from the government. Darwish said the zone will conduct operations under the single-window system, which is expected to reduce bureaucratic oversight of and accelerate investment procedures.