GE wins $300m Egypt gas turbine deal
Dubai, September 21, 2011
GE said it has clinched contracts worth $300 million to supply six gas turbines and associated services to the Egyptian Electricity Holding Company for two new combined-cycle power plants near Cairo.
GE and its Chinese consortium partner, Sepco III, have been selected for expansions of Giza North and Banha power plants in Egypt, said the technology leader in a statement.
The projects will add 2,250 MW of capacity to the country’s power grid, or 10 per cent of capacity to the country’s grid, supporting residents and businesses in Cairo.
These $300 million contracts constitute the largest power generation order between GE and Egypt, said a senior official.
Joseph Anis, GE Energy’s president and CEO for the Middle East said: 'Strong economic growth in Egypt continues to drive the need to increase the country’s supply of reliable electricity.'
'With the Giza North and Banha projects, we continue our commitment to supply the technology and services that will help our customers throughout the region meet their long-term power generation and delivery objectives,' he noted.
The Engineering Procurement & Construction (EPC) company for the Giza North and Banha power plants is China-based Sepco III, said the official.
GE and Sepco III have successfully collaborated on several other projects around the world and in the Middle East region. This is the first time that both companies have joined in a consortium partnership structure for a power project in Egypt, he added.
According to Egypt’s Ministry of Electricity and Energy, the country has seen its power demand grow 13 per cent from 2009 to 2010, and the growth is expected to continue at a rate of approximately 11 per cent over the next five years.
The Giza North and Banha plants are scheduled to enter service by the middle of 2013, in time to help the country meet its peak power demands during the summer.
GE will supply four Frame 9FA Gas Turbines for Giza North and two 9FA Gas Turbines for Banha, along with installation and technical services.
Dr Hassan Younis, Egypt Minister for Electricity and Energy, said the country is heralding a new era in its growth story, with a focus on the all-round development of all economic sectors.
'Driving this is the power industry, which is being upgraded and strengthened to meet the needs of the people, and boost business efficiencies,' the minister noted.
'The partnership with the major industrial energy companies will accelerate the development of the country’s power sector, and in turn, the overall economy,' he added.
Mahmoud Balbaa, chairman of Egyptian Electricity Holding Company, said: “GE’s advanced technology produces power with high efficiency and promotes energy sustainability in Egypt.'
'We are pleased to be working with an industry leader such as GE to support us in meeting the growing power demands in Cairo and the country,' he added.-TradeArabia News Service