Last Update 23:16
Sunday, 20 October 2019

Egypt signs conditional contracts with China to build coal-fired power plants

Waad Ahmed , Friday 22 Jan 2016
In this photo provided by the office of the Egyptian Presidency, Egyptian President Abdel-Fattah El-Sisi, right, speaks Chinese President Xi Jinping, during their meeting at the Presidential Palace in Cairo, Egypt, Thursday, Jan. 21, 2016 (Photo: AP)
Views: 4839
Views: 4839

Egypt signed conditional contracts with Chinese electrical engineering companies to build two coal-fired power plants and develop a transmission grid, electricity ministry spokesman Mohamed El-Yammany told Ahram Online on Friday.

Dongfang Electric Corporation plans to build six units producing 660 megawatts each. The first phase of the power plant will begin with three units at a combined capacity of 1,980 megawatts, for a cost of almost $2 billion.

Shanghai Electric will construct four units at a combined capacity of 2,640 megawatts for a cost of $2.24 billion for the foreign components and LE3.1 billion ($396 million) for the domestic components.

State-Grid Corporation of China signed a $650 million deal to develop the transmission grid to link three under-construction Siemens power plants.

The German industrial company signed an 8 billion euro (approximately $9 billion) deal in June with the Egyptian government to establish three high-efficiency natural gas power plants and wind power installations at a capacity of 16.4 gigawatts.

The Chinese agreements, which are conditioned upon the completion of the technical studies, will be financed by the Export and Import Bank of China (EXIM) and the Industrial and Commercial Bank of China (ICBC), said El-Yammany.

During his two days visit to Egypt, Chinese President Xi Jinping signed a number of cooperation deals aimed to foster over 60 years of ties between the two countries, Egypt's state TV reported.

The deals-- in the transportation, power generation, and civil aviation sectors -- are worth $15 billion, according to Egyptian Minister of International Cooperation Sahar Nasr.

The planned power plants will be built in the Hamrawein area in the Red Sea governorate east of the country, El-Yammany said.

The government signed a memorandum of understanding with the two companies for the projects in March last year during the Sharm El-Sheikh Economic Development Conference.

The use of coal for power generation was approved by Egypt in 2014 due to the shortage of natural gas, despite controversy about its environmental impacts.

Egypt has turned into a net importer of natural gas from a net exporter in the past few years on the back of rising consumption and falling production.

The country has been experiencing an energy crunch since the summer of 2008, taking a further blow following the 2011 uprising.

Short link:


Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.

22-01-2016 06:52pm
A kick in the teeth
Heads of delegations at the 2015 United Nations Climate Change Conference (COP21)in Paris, which led to the signing of the Paris Agreement including Egypt. Sisi is participating this event. Signing this Paris Agreement and signing a short time later a contract with China to build several coal-fired power plants is stroke into face on our climate and an complete environmantal shame for Egyptian generations and also worldwide. Rising sea water level is already a huge problem in Nile Delta and the Government closed the eyes. Also, remember the horrible coal smog in Peking a few days before with catastrophic impact.
Comment's Title

22-01-2016 03:50pm
Backward decision
If the Egyptian officials who planned theses projects spent a week in Shanghai, Beijing, or Shenzhen; and got suffocated by the coal smog, they would have thought twice before they took this backward decision!
Comment's Title

© 2010 Ahram Online.