Electricity Ministry agrees with Acwa Power to establish power plant in Luxor

Mohamed Farag
2 Min Read
Orascom Construction and Siemens plan to build two combined cycle power plans, each with a 4,800 MW power capacity (AFP File Photo)

The Ministry of Electricity has agreed with the Saudi company Acwa Power to launch a power plant with a capacity of 2,250 MW in Luxor governorate.

According to sources in the ministry, the new plant was supposed to be established in Dayrut city in Beheira, but the lack of transmission stations in the region forced the government to move the project to Luxor.

The sources told Daily News Egypt that the ministry negotiates with Luxor governorate to allocate the required land for the project on an usufruct system for 25 years. The Cabinet issued a state guarantee for the Saudi company to build the new plant.

Under the state guarantee, the government is obliged to pay the company’s dues if the Ministry of Electricity fails to pay.

The sources added that the ministry is negotiating with the company to agree on the new site of the project and the different items of the contract, noting that weekly meetings with officials at the Egyptian Electricity Holding Company are held to complete the agreement.

The sources said that the ministry will sign four agreements with Acwa Power regarding purchasing the energy produced by the project as well as organising the gas supply, state guarantees, and the usufruct system. The ministry seeks to complete the agreements in the middle of next year.

Hassan Allam Construction will provide 25% of total investments to Dayrut power plant, while General Electric (GE) and Chinese Sepco will supply and install all equipment for the project.

The investments allocated for the new power plant are estimated at $2.2bn, and will consist of three units with a capacity of 750MW each, operating on a combined cycle system.

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