The Egyptian Electricity Holding Company (EEHC) concluded negotiations with the UAE company Al Nowais, for the construction of a coal-fired power station, and will sign the final power purchase contracts during the first quarter (Q1) of next year, following approval from the Council of Ministers.
High-level sources at the ministry of electricity said that the EEHC reached a final agreement with the UAE company to purchase the power produced from a coal-fired power station located in the Oyoun Musa area of South Sinai, with a capacity of 2,650MW.
The sources added that the Belgian consultant Tractebel attended all the meetings and discussions and was briefed on all the technical, financial, and the legal terms of the project after receiving them from UAE officials.
The sources added to the Daily News Egypt that the price of purchasing electricity is different from the price agreed upon with the Chinese alliance to build a coal-fired power station in the area of Hamrawin with a capacity of 6,000MW.
The sources said that a detailed report on the project will be submitted to the Council of Ministers for a decision, and if approved, the contracts will be signed in the presence of the prime minister during a large ceremony.
The EEHC signed a memorandum of understanding with the UAE company Al Nowais in September 2015 to establish a clean coal electric power plant in the Oyoun Mousa region, which pursues the latest technology and global environment standards. The first phase will provide 1,320MW of electricity.
According to the offer by the UAE company, the project will be built under the build, own, operate (BOO) system.