UAE firm signs deal to build Egypt's first coal-fired power plant

An Abu Dhabi-based private firm is leading a consortium to build Egypt's first coal-fired power plant in the Suez area to meet the country's acute power shortage, the chairman of the investing company said on Tuesday.

A memorandum of understanding was signed between Hussain Al Nowais, chairman of Al Nowais Investments, and Gabr El-Desouky, chairman of Egypt's state-run power company EEHC.
Al Nowais will provide 70 percent of the capital, he told Reuters by phone. He declined to give an estimated investment value for the plant or funding details saying those details will be finalised shortly.

He added there were discussions with investors in Singapore, South Korea, China and Egypt to fund the remaining 30 percent of the plant, which will be built in Ayoun Moussa in the Suez area with plans to build a jetty for importing coal. There is no timeframe for when the plant will built or become operational.

Coal will be sourced from international markets such as South Africa, Indonesia and others.
"Egypt has opened the door for private investment in its power sector and we want to be an early investor," Al Nowais said.