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Al Nowais negotiates with Finance Ministry to issue sovereign guarantee for Oyoun Moussa coal plant - Daily News Egypt

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Al Nowais negotiates with Finance Ministry to issue sovereign guarantee for Oyoun Moussa coal plant

Orascom Construction competes to establish Hamrawein plant; examination of offers to end in December

The Emirati company Al Nowais is negotiating with the Ministry of Finance in order to obtain a sovereign guarantee for a coal-forged electricity plant with a 2640MW capacity in the area of Oyoun Moussa.

A source at the Ministry of Electricity said that a number of technical, financial, and legal agreements have been concluded. The contracts will be sent to the cabinet for approval after signing the sovereign guarantee agreement with the Finance Ministry. This means that a promise to settle debts will be made by the Finance Ministry if the Egyptian Electricity Holding Company (EEHC) fell into trouble.

The to-be-established coal plant will be based on the build own operate (BOO) system. EEHC signed a memorandum of understanding with Al Nowais in September 2014 to establish a coal-fired electricity plant. A contract was signed under the condition that Egypt would accept the electricity tariff purchase to implement the construction of a coal technology plant.

The source explained that Al Nowais officials are waiting for a sovereign guarantee to sign all the agreements. The first phase will be implemented with two generating units with a capacity of 660MW each, within 40 months of signing.

The company recently introduced the plant’s implementation plan and installation contractors. All controls and requirements were agreed in cooperation with Black & Veatch, a global leader in engineering, procurement, and construction (EPC) services for the crucial areas of energy, water, and telecommunications.

The source said that the holding company will complete the examination and study of seven offers made by Arab and international companies to set up a coal-fired power plant under the EBC+ F system and a capacity of 6,000MW in Hamrawein in December.

The system used by Al Nowais is the BOO system.

Sabah Mashaly, the first undersecretary for development at the Ministry of Electricity, told Daily News Egypt in previous statements that the ministry is studying seven offers to establish a coal-fired power plant, including from Orascom Construction.

The Ministry of Electricity has signed a memorandum of understanding with Orascom Construction and the International Petroleum Investment Company (IPIC) to establish a coal-fuelled power plant with cost totalling $3.5bn.

The project will generate 2,400-3,000MW. It will be established in the Hamrawein area of ​​the Red Sea governorate and will be divided into four 660MW stations.

According to sources from the EEHC technical committee for inspection of offers, the contract is expected to be signed with two of the seven applicants. Each company proposed several offers ranging between 3,000-4,000MW. The ministry aims to produce 6,000 MW from the area.

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