Egypt Invites Bidders to Build Own & Operate 1,500-Megawatt Thermal Power Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--Coming on the heels of the success of a global invitation to bid on a contract to build own and operate (BOO) a 250-megawatt (MW) windfarm, where 10 international companies were prequalified, the Egyptian Ministry of Electricity and Energy will bid a BOO for a 1,500-MW thermal power plant.

Under BOO project criteria, Egyptian Electricity Transmission Company will purchase the energy produced by the project for 20 years. This marks the first time a conventional power plant has been developed in this fashion.

The power plant will be built in the Dirout village of Beharah County. The establishment of the power plant is part of a comprehensive program to attract local and foreign investment to contribute to secure power supply for all development projects--industrial, agricultural, commercial and residential-- all over the republic to cope with growing energy demand.

Dr. Hassan Yunis, the minister of electricity, said that the electricity sector is working on future planning to meet the requirements of future generations, and is developing three projects in Egypt with a capacity of 2,000 MW, incorporating build-own-operate-transfer (BOOT) contracts for up to 25 years.

It is worth noting that the peak load during the year 2006-07 was 18,500 MW, compared to peak load of 19,700 MW in 2007-08. The Egyptian Electricity Holding Company (EEHC), with its six affiliated Electricity Production companies, Cairo Electricity Production Company, West Delta Electricity Production Company, East Delta Electricity Production Company, Upper Egypt Electricity Production Company, Middle Delta Electricity Production Company, and Hydro- Power Plants Electricity Production Company, has total installed capacity of 25,171 MW in year 2008-09, and plans to add 10,000 MW during the next five years.

This invitation includes setting up for the first time a dual fuel (gas/diesel) combined-cycle power plant consisting of two 750-MW capacity units, with the possibility of establishing a third unit in the future.

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