By Mohammed Jetutu
German contractor Siemens has won contracts worth around $9Billion from the Egyptian Government to build 16,400MW of natural gas-fired and wind power projects in the country.
This is about two-thirds of the country’s current peak generation.
Europe’ biggest engineering firm will work with Egyptian partners Elsewedy Electric and Orascom Construction to construct three natural gas-fired combined cycle power plants (CCPP) on a turnkey basis, with a total combined capacity of 14, 400MW.
Each of these projects, planned to be built in Beni Suef, Burullus and New Capital, will have a generation capacity of 4,800MW and will be powered by eight Siemens H-Class gas turbines.
Under the terms of the contracts, an initial 4,800MW is expected to be turned operational prior to summer 2017.
The remaining portion of the proposed capacity will be commissioned in 38 months after Siemens closes financing and receive payments for the project in advance.
Siemens will also be responsible for the development of 12 wind projects in the Gulf of Suez and West Nile areas. The wind projects will be equipped with 600 turbines offering a combined capacity of 2,000MW renewable power. In this part of the contract is the provision for local manufacturing of the rotor blades for the wind plants, at a factory to be located in Ain Soukhna region.
The facility is expected to be up and running by the second half of 2017. Siemens discloses that loans for the order were mainly secured through export credit insurers in Germany and Denmark.