Emirate energy firm Al Nowais is currently negotiating with the Egyptian Ministry of Finance over sovereign guarantees in order to build its 2640MW capacity coal-fired power plant in Ain Mose in Sinai region, reported Al Borsa.

A source with the Ministry of Electricity stated that the financial, operational and legal terms of the  contract were prepared and will be sent to the Egyptian Cabinet after signing the sovereign guarantees. According to the sovereign guarantees agreement, the ministry of finance should cover outstanding debts if the Egyptian Electricity Holding Company was unable to pay its dues. Al Nowais is waiting to be granted the guarantees in order to sign the contracts.

The Ain Moses plant will be executed according a the build, own, and operate (B.O.O) system.  The first phase of the project, which should be finalized within 40 months from signing, will include two coal-fired units with a capacity of 660MW each.

In related news, the Egyptian Electricity Holding Company is studying 7 offers to establish a 6000MW capacity coal-fired power plant in Hamrawein according to an engineering, purchasing, and construction (EPC) and Finance system.