Suez Gulf

completed

The project consists of the development, construction and operation of a 682.5 MW steam generation plant which will be fueled with natural gas with residual fuel oil (mazout) as backup fuel. The energy produced will be sold to the Egyptian Electricity Holding Company (EEHC, the national utility) on the basis of a 20-year Power Purchase Agreement. Commercial operation is expected in early 2003. The project is in line with the Government of Egypt’s policy of encouraging the private sector to build, own and operate power generation plants. Being one of the first Build-Own-Operate-Transfer (BOOT) projects in the country, it will further Egypt''s goal of liberalizing infrastructure sectors, including power, and will serve as a model for future private power projects in the region. Furthermore, the project will provide a long-term source of low cost power for Egypt''s consumers and industries. Given the relatively large size of the needed long-term financing for this project, IFC has a key role to play in mobilizing the long-term maturity debt that the project requires.