Egypt’s first coal-fired power plant will be based in the Suez area, and will be constructed by Al Nowais Investments, a company based in Abu Dhabi. There are also reports to set up a jetty in the nearby so it will be possible to import coal required for the new coal-fired power plant.
The country has been facing severe problems in regard to power generation and it should be a relief once this 3,960 MW power station has been complete. Aparently, the feasibility study for the coal-fired power plant project will be concluded before end of this year.
Details of the project are not unveiled yet, but Reuters reported that 70% of the capital will be provided by Al Nowais Investments. Details on the costs for the Egypt’s first coal-fired power plant will be released later. Reuters reports also revealed that there were discussions to see Singapore, South Korea, China and Egypt fund the remaining 30%.
Italy’s Technimont has been contracted as the technical consultant while HSBC will be the financial advisor for the project. The legal advisor is White & Case Company. Egypt has been keen, this year, to reform the energy sector, which would unlock the industry. Among these reforms include government’s opening of importation of natural gas, coal and coal-like products.
Earlier on this year, the government had decided to import coal to end power shortages in the country, a decision which caused a cement manufacturer to say they would convert one of their manufacturing plants to using coal. Egypt is also planning a thermal steam power plant in the nearby, to produce 650MW of power.