A source with the Egyptian Ministry of Electricity stated that the ministry is moving forward with ongoing negotiations with Saudi’s ACWA Power to build power plant in Dairut, at a capacity 2250MW, reported Al Borsa. The project is considered the first facility within Egypt to apply a build, own, operate (BOO) agreement with investment $2.1b
He added that the ministry is negotiating over 3 articles of the contract that include the governmental guarantee, fuel supply and arbitration. The ministry has no intentions to stop negotiation or cancel the project as Egypt has agreed with ACWA Power on energy purchasing and the land’s usufruct for 25 years but delayed signing until all parties agree the comprehensive terms and conditions. Accordingly, ACWA Power will start preparing the financial closure within 11 to 13 months from the contract signing. The company will finish the plant construction in around 3 years.