Egypt government support for 320MW project

ITALY: Italgen, a subsidiary of cement producer Italcementi, has signed a memorandum of understanding with the Egyptian investment ministry for government support for a 320MW project on the Gulf El Zayet.

The company has also started civil works on the first phase of 120MW. Suppliers of the turbines and substation for phase one have been shortlisted, with a final decision expected next year.

Funding of phase one, estimated at $200 million (EUR 160 million), is also in progress. "Major international financial organisations are potentially in place, together with local commercial banks and internally available financial sources," Italcementi said.

The company signed a land use agreement in 2012 and secured contracts with the Egyptian Electricity Transmission Company in 2013. Further progress was delayed by concerns over migratory birds and political unrest in Egypt.

When completed, the plant will help power Italcmenti's cement works.

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