Friday 27 May 2022

Senior officials at the signing ceremony

Acwa signs deal for $2.3bn power project in Egypt

CAIRO, November 3, 2018

A consortium led by Acwa Power has signed a power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) for a gas-fired combined cycle plant.
The signing ceremony took place in the presence of Egypt’s Prime Minister Mustafa Madbuoly;  Electricity and Renewable Energy Minister Dr Mohamed Shaker; Osama Nugali, ambassador of Saudi Arabia to Egypt; Acwa Power chairman Mohammed Abunayyan, and senior officials of the ministry. The signing ceremony was held at the headquarters of the cabinet presidency in Cairo. 
The project, which is located in Luxor, will have a capacity to generate 2,300 MW and have an investment value of about $2.3 billion. The project is expected to start the first phase operation in summer 2022 and the full commercial operation in summer 2023. 
The PPA is under a build-own-operate framework with a term of 25 years. The project will be vital in meeting Egypt’s increasing demand for electricity over the next years, particularly in the upper Egypt region.  
Commenting on the signing, Paddy Padmanathan, president and CEO of Acwa Power, said: “Signing the PPA today represents a significant step in the development of the project, more importantly it demonstrates the commitment of the Egyptian government to encourage the participation of the private investors in infrastructure projects. We look forward to completing the financing arrangements and commence construction of the power plant to enable us to contribute to the development of the Egyptian power sector by delivering reliable, safe and cost effective electricity.”
Rajit Nanda, chief investment officer of Acwa Power, added: “Egypt has always been a strategic interest country for Acwa Power. Ceremonies like this one taking place today reaffirm Acwa Power’s commitment to the Egyptian power sector. The project is very significant as it represents one of the highest foreign direct investment infrastructure projects in Egypt. I am looking forward to working with the international finance institutions such as DFIs, ECAs, and commercial banks to raise the required fund for the project.” 
Acwa Power is partnering with the Egyptian group Hassan Allam, one of the most reputable local companies in Egypt, on the project, highlighting the company’s commitment and belief in the Egyptian Market.
Acwa Power is also pursuing a number of other opportunities to consolidate its presence and support the Egyptian Market, notably a 200 MW solar photovoltaic (PV) project in Kom Ombo and a pipeline of more than 500 MW wind projects, in addition to three solar PV power plants in Benban of 165.5MWp total capacity within the Feed-in-Tariff (FiT) programme round II which are still under construction by Acwa Power. – TradeArabia News Service 

Tags: Egypt | project | ACWA Power |

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