Egypt’s Ministry of Electricity and Renewable Energy is set to hold a community consultation session to assess the environmental and social impacts of the proposed Hamrawein coal power station project in El-Quseer, a city in eastern Egypt, located on the Red Sea coast.
Some of the issues to be addressed during the session is clarification on the importance of the project and the technology used that is supposed to be of the highest standards of safety and security.
Hamrawein coal power station project
The Hamrawein coal power station project is being implemented under the system EPC + Finance. A consortium of China’s Shanghai Electric and Dongfang Electric Cooperation, and Egypt’s Hassan Allam Construction won the deal to put up the 6,000MW coal-fired power plant in a period of six to seven years.
According to the agreement, the consortium will be responsible for the construction, design, installation, and operation of the Hamrawein station, as well as provision of banking facilities to fund the project.
The land allocated for the implementation of the clean-coal plant has already been prepared, and all studies completed. In addition, all licenses and approvals required for the project have been issued. The community consultation session is therefore considered as the only step remaining before the actual work of the project commences.
Financing for the project
It was reported In January 2016 that the plant would be funded by the Industrial and Commercial Bank of China (ICBC), the Export and Import Bank of China (EXIM), and the Chinese Development Bank (CDB) with loans payable by Egyptian Electricity Holding Company (EEHC) in over 15 years with an allowance for facilitated payment.
The China Development Bank has so far made a bid to lend the Electricity Holding Company US $3.7bn to fund the coal-fired power plant project in Hamrawein area, and the latter is still in talks with the Chinese side about the offer.