ACWA Power Company, in cooperation with Hassan Allam Group, will establish a $2.3 billion gas-fired combined cycle electricity generating plant with a 2300 MW production capacity, Construction Review Online reported.

The plant will be constructed in Luxor and expected to start operation by 2023, Minister of Electricity and Renewable Energy, Mohamed Shaker, confirmed.

This comes as the two companies have signed a power purchase agreement for the plant.

“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,” said Paddy Padmanathan, President & CEO of ACWA Power.