Funding Set for New Cairo Powerplant
Mounting an effort to combat the blackouts and brownouts that are familiar features of life in Cairo, the Egyptian government recently secured the final piece of financing for a new 1,500-MW, combined-cycle gas-fired powerplant designed to keep the capital city’s lights on longer. With Egypt’s electricity demand set to grow 50% by 2017, the planned $1.3-billion Giza North plant represents a small but critical step toward power sufficiency.
A $384-million loan from the European Investment Bank completed financial requirements for the plant, which is 30 kilometers northwest of Cairo. The World Bank board of directors approved a $600-million loan for the project last June. The government and the Organization of Petroleum Exporting States will make up the balance.
The still-to-be-designed project will be managed and supervised by Cairo-based Power Generation Engineering and Services Co. Major components include two 750-MW modules, each with a 250-MW gas turbine and two 250-MW heat-recovery steam generators.
Egypt’s peak demand is now 23,500 MW and growing at 11.5% a year, according to the state utility Egyptian Electricity Holding Co. (EEHC). By 2027, Egypt plans to triple its current energy capacity at an estimated cost of $100 billion to $120 billion. Some observers question EEHC's ability to achieve such a goal, based on past performance.
The EEHC says it will, by 2012, be implementing various power projects totaling 7,240 MW: 6,500 MW in thermal plants, 600 MW in wind and 140 MW in solar. World Bank officials estimate Egypt’s planned investment in the years between 2007-2012 will total $20 billion in generation and $4 billion in transmission and distribution.
Following huge electricity outages this summer, the Council of Ministers last month accelerated the commissioning of the 375-MW Nubariya plant, 120 km northwest of Cairo, says Magdi Radi, council spokesperson. A new $350-million, 120-MW plant at Al-Koraymat, 90 km south of the city, is set for commissioning later this year, he adds. It will include 20 MW of solar capacity.
These plants would boost Egypt’s current 17,500-MW installed power-generating capacity. More than 85% of the country’s generation is thermal, while a hydro plant at Aswan High Dam contributes 16%.