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Egyptian – Chinese consortium wins Hamrawein power plant project

Monday 25 June 2018 01:04 PM

Coal-feuled power plant
Coal-feuled power plant

By Omar Salem:
An Egyptian – Chinese consortium made up of Hassan Allam Holding, Shanghai Electric and Dongfang Electric has won a bid to build a 6,000 megawatt coal-fired power plant in the Red Sea port of Hamrawein.
Three global consortiums competed for Hamrawein power plant last May. Each alliance submitted 2 offers to the ministry of electricity.
The Egyptian – Chinese consortium advanced main offer of USD 4.4bn and an alternative offer of USD 6.61bn.
An official at the ministry of electricity said that the offer of Egyptian – Chinese consortium is the lowest in terms of cost, adding that there will be negotiations on contract terms next Thursday, adding that the final contract of project will be signed before August.
He explained that the winning alliance is to secure 78% of financing from China and the remainder will be secured through banks operating in the Egyptian.
Financing is expected to be finalized within 6 months by 2019, according to the official.
In statements to Reuters, minister of electricity Mohamed Shaker said that the winner would be chosen according to the average price of electricity production during the lifetime of the project.
In previous statements, Shaker said that the project’s construction is expected to take from five to six years, with each phase of the plant to enter operations at 2,000MW.
The project is planned under the Electricity Ministry’s 2022-2027 program on EPC (Engineering, Procurement, Construction) + Finance basis.