10 companies shortlisted for Egypt’s first privately-owned power station

Minister of Electricity and Energy Hassan Younis announced that from 19 companies and consortia, ten have been shortlisted for the task of establishing Egypt’s first thermal power stations.
The government plans to establish two power units in Dairout, Beheira, said Younis, under a Build-Own-Operate (BOO) arrangement. The station will run on both natural gas and gas oil and the two units will each produce 750 megawatts of energy, he added. A third unit will also likely be established.
The Egyptian Electricity Transmission Company will purchase the energy produced and transmit it to distribution companies, according to a 20-year renewable contract, explained the minister.
The bid requirements will be sent in early October to the shortlisted companies for them to prepare and lodge tenders, said Younis, who added that the station should become commercially operative in January 2015. The ministry plans to cooperate with the private sector on three similar projects, again using the BOO arrangement, said Younis.
Among the companies excluded from the tender process is one owned by “unwanted entities,” a source from the Ministry of Electricity said. The company has been excluded from other power projects in Yemen, according to the source. Besides the preservation of national security, the main criteria used in shortlisting the companies were a company’s ability to run the project and obtain funds from donors.
The company to win the bid will be the one which offers the lowest price for every kilowatt/hour sold to the Egyptian Electricity Transmission Company, according to the source.
Translated from the Arabic Edition.

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