Acwa Power is set to build a 2,250MW power plant at a cost of $2.2bn in Luxor following approval by Egypt’s ministry of electricity, said media reports.
Following intense negotiations between the ministry and Luxor governorate, the required land will be allocated on a usufruct system for 25 years, according to a report by Daily News Egypt.
The ministry will sign four agreements with Saudi Arabia-headquartered Acwa Power regarding purchasing the energy produced by the project as well as organising the gas supply, state guarantees, and the usufruct system, the report said, citing sources.
The report added that under the state guarantees, the government is obliged to pay the company’s dues if the ministry of electricity fails to pay.
The ministry seeks to complete the agreements in the middle of next year.
Hassan Allam Construction will provide 25% of total investments to Dayrut power plant, while General Electric (GE) and Chinese Sepco will supply and install all equipment for the project.
The new power plant will consist of three units with a capacity of 750MW each, operating on a combined cycle power generation scheme.