Orascom to build $3bn Egyptian power plant

Dutch contractor Orascom Construction is to build a coal-fired power plant in Egypt worth an estimated $3bn. 

The power plant is expected to have a capacity of up to 3GW. It will employ advanced clean coal technology that complies with EU standards for emission control.  

The project is being fast-tracked to help meet Egypt’s demand for electricity, which has long been a weakness of the economy. It will be based in the vicinity of El Hamarawein port on the Red Sea coast, which is currently dedicated to the export of phosphates. 

Orascom group is owned by OCI, a Dutch producer of natural gas-based fertilisers and chemicals. It working on the project with the International Petroleum Investment Company (IPIC), a state-owned enterprise from the United Arab Emirates. 

Nassef Sawiris, the chief executive of OCI, said, "Growth in power generation is crucial to the sustained development of the Egyptian economy. We are pleased that we, in partnership with IPIC, can contribute to this and believe that such joint efforts with IPIC lay a solid foundation for collaboration on future projects." 

Khadem Abdullah al-Qubaisi, managing director of the IPIC, said: "IPIC and Orascom Construction’s co-operation in this project represents a combination of energy industry expertise, construction capability, and strong local presence in Egypt." 

The construction of the project is still subject to governmental and corporate approvals. It is due to be finished in 2018.