The Egyptian Electricity Holding Company (EEHC) has received three offers from companies to establish a power plant operating with coal at a capacity of 6,000MW and with investments of $10bn at Hamrawein.
Sources at the Ministry of Electricity said that the companies are American, Chinese, and Japanese. They have made their offers according to the technical and financial envelope system. The project will be implemented based on the EPC+ financing system in which the implementing company provides financing and the holding company repays the amount upon completion of the project.
Sources added that the company has not contracted until now with the Belgian consultancy office Tractebel due to disagreements regarding some items of the contract. Negotiations are expected to be completed within two weeks.
“There is no problem in receiving technical and financial offers from companies before contracting with the consultancy office, where it will assess the offers in cooperation with the EEHC. The project takes about seven years to be implemented,” the sources said.
The explained that companies will apply to implement the projects according to the financial and technical envelopes system. The EEHC will cooperate with the consultancy office in contracting with the winner company based on design, financing, establishment, and operation systems.
The sources said that the electricity plants using coal are part of the ministry’s plan to diversify the sources of energy production to provide electricity without outages and achieve sustainability.
The ministry in January received offers from Shanghai Electric, Dong Fang, Sewedy-Marubeni coalition, Mitsubishi-Hitachi coalition, Sumitomo, and the coalition of Apec-Orascom.
Fouad Masnour, head of the private sector plants department at the EEHC, said that negotiations continue with Emirati Al Nuwais regarding the items of the contract and purchase price of the energy produced from coal-fired power plant in Oyoun Mousa with 2650MW capacity.
He explained that representatives of Al Nuwais and the American consultancy office are holding weekly meetings to reach an agreement. On Sunday, the representatives of the Emirati company requested a timetable to continue the discussions.