Egypt's ministry of electricity has received a series of official correspondences from the Central Bank of Egypt for the provision of guarantees valued at USD 2.5 billion for the Dairut electricity plant, which is located in Mahmoudiya area in Beheira governorate; an executive source at the ministry told Zawya.
"CBE has pledged, through official letters, to provide sovereign guarantees for the Dairut project, covering total investment costs as well as the operating costs necessary for project completion. In this respect, CBE has responded favorable to the requirements of numerous private sector investors, who had contested the absence of sufficient guarantees," said Gaber El Dessouky, president of the Egyptian Electricity Holding Company,
CBE's approved guaranteeing the electricity sector in the process involving the purchase of electricity production from the Dairut plant, which is set to be constructed and operated by the private sector by virtue of a usufruct rights to the land scheme for a period of 25 years.
El Dessouky added that the CBE has concluded the revision of all contractual terms and conditions involving the tender, which is expected to be take place in May 2013, between 10 companies that have technically qualified for plant construction. Electricity production is expected to be 750 MW.
"The Dairut plant will operate through a combined cycle system, utilizing dual fuel (natural gas - diesel) for three units - each of capacity 750 MW - at a total capacity of 2250 MW, from six gas units and three steam units; with a possibility for constructing a third unit. The total power produced by the plant will be purchased for the duration of 20 years, at a price mutually agreed upon with the selected private sector investor awarded the project," added El Dessouky.
The project is expected to materialize through the Public Private Partnership (PPP) initiative, owing to the Egyptian governments strive towards remedying the deficit in power production, which has reached more than 2000 MW. The national electricity network currently produces approximately 23,000 MW, whereas the country requires a total output exceeding 25,000 MW in peak summer months to fulfill demands.
© Zawya 2013
