ACWA Power held several intensive meetings with the ministers of electricity, petroleum, finance and investment to discuss the constructions of power plants in Luxor that could cost up to $2.5bn.
Governmental sources said to Daily News Egypt that the station was going to first be constructed in Dayrout at El Beheira. However, due to the absence of load centers for the transmission of the electricity produced, and the government’s desire to have power stations in Upper Egypt, Acwa Power was notified to transfer the project to Luxor. Negotiations are now under way to grant the company the land on the basis of right-to-use.
Additionally, the sources pointed out that despite the agreements to buy solar power from stations in Aswan with a capacity of 120 MW in cooperation with both El Sewedy Electric and Al Tawakol Electrical Company, the Saudi company is determined to implement a power plant operating cycle installed in the area of Luxor.
Nevertheless, the sources pointed out that the cabinet granted a government guarantee to ACWA Power to build a power plant with a capacity of 2250 MW, as the project was included in the 2022-2027 plan of the Ministry of Electricity.
Under the government guarantee, the government is obliged to pay the debts of the company if the Ministry of Electricity fails to pay.
The Ministry of Electricity has started negotiations with ACWA Power after proposing its offer to implement the project. Hassan Allam Holding for Construction contributes about 25% of the cost of constructing the power station; in addition, both General Electric and SEPCO will provide the equipment and materials for the project.
Furthermore, it was proposed that the power plant would consist of three units with a capacity of 750 MW each, with combined cycle technology that produces one-third of the energy without the use of additional fuel.
The sources said that the Saudi company offered the Minister of Investment to launch water desalination plants in Egypt, especially as ACWA Power aims to expand projects during the coming period.
The company has investment plans to expand its operations in the Middle East, Asia, and Africa, and has branches and projects in 11 countries with a total investment of over $31bn, said Mohammad A. Abunayyan, chairperson of the board at ACWA Power.
He explained that the company is interested in investing in the establishment of projects for the production of electricity and new and renewable energy, in addition to desalination plants. The legislation and regulations governing investment in Egypt encourages the company to implement projects during the coming period.