The Ministry of Electricity approaches the completion of the contract with Al Nowais Investments company of the UAE to build a coal-fired power station in Eyon Moussa with a capacity of 2,650 MW and investments of about $4bn.
Sources in the Ministry of Electricity told Daily News Egypt that they are coordinating with the Ministry of Finance to sign the power-purchase agreement, where all parties agreed to reduce the price of energy produced from the plant.
The sources explained that the government decided to exclude Al Nowais Investments from the land ownership restrictions in Sinai, while the state will not bear any financial burdens. The UAE company will establish and finance the project and sell the production to the Egyptian Electricity Holding Company (EEHC).
The sources noted that they aim to reach the best final agreement for the project that is listed within the Ministry of Electricity 2022-2027 plan.
Al Nowais Investments has established two companies to administrate and operate the station and another to carry out the logistics and operation of the joint facilities.
According to the provisions of Law No. 14 of 2012 on integrated development in the Sinai Peninsula, the participation of Egyptians should not be less than 55% of the total shares of any company operating in that region.
Al Nowais Investments was exempted from this law after requesting an exemption for the project’s two companies in order to be able to implement the project, especially as that the capital of both companies is 100% foreign.
The President of the Republic issued Decree No. 235 of 2016 approving the exclusion of the two companies from the participation of Egyptians in their capital to implement the project, while complying with the other provisions and controls of Decree Law No. 14 of 2012 concerning the development of the Sinai Peninsula. This means that the companies can have 100% foreign capital but do not have the right to own the project’s land.