(AFP Photo)
Orascom Construction, part of OCI NV, announced Wednesday its intention to commence studies to construct and develop a coal-fired power plant in cooperation with UAE-based International Petroleum Investment Company (IPIC).
The total value of the project has been placed at approximately $2.5bn to $3bn, OCI NV exclusively told Daily News Egypt.
The company added that project’s timeframe will be four years, adding that it is expected to have a capacity of up to 2,000 MW to 3,000 MW. It will utilise clean-coal technology that complies with EU standards for emission control.
The announcement came one day after the Egyptian Tax Authority’s Independent Appeals Committee ruled in favour of OCI, ending a tax dispute initiated in October 2012. Commenting on the ruling, OCI CEO Nassef Sawiris issued an exclusive statement to Daily News Egypt saying it marks the end of a challenging period for OCI. He noted that he looks forward to a renewed management focus on building for the future.
With regard to the new power project, Sawiris commented that growth in power generation is crucial to the sustained development of the Egyptian economy. He added that this is deemed a strategic step in developing Orascom Construction’s infrastructure focus in Egypt and other key regional markets.
IPIC’s Managing Director Khadem Al-Qubaisi said: “As a company wholly owned by the government of Abu Dhabi and under the direction of Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi, IPIC is proud to play a role in assisting Egypt in meeting its current and future energy needs.”
Pending technical studies and governmental and corporate approvals, Orascom Construction and IPIC aim to develop the project near to El-Hamarawein port on the Red Sea coast. The port is currently dedicated to the export of phosphates, to help meet Egypt’s rising demand for electricity.
