Suez Gulf

completed

Electricite de France International S.A. (EDFI), the overseas investment arm of Electricite de France, the French public power utility, has recently been awarded the "Port Said" (682.5 MW) and the "Suez Gulf" (682.5 MW) BOOT power projects, both located in Egypt, following a competitive bidding process. Both projects share the same design and technology (natural gas-fired steam generation plants). The Suez Gulf project consists of the development, construction and operation of a 682.5 MW steam generation plant to be located on the western coast of the Gulf of Suez, which is part of the Red Sea, approximately 52 kms south of Suez City, Egypt. The plant will be capable of being fueled with natural gas and residual fuel oil, with natural gas being the primary fuel. The energy produced will be sold to the Egyptian Electricity Authority, the national utility, on the basis of a 20-year Power Purchase Agreement that was signed in October 1999. Similarly, a fuel supply agreement was signed in October 1999 with CitiGas, a subsidiary of the Egyptian General Petroleum Corporation, the state-owned company that controls the hydrocarbon sector in Egypt. The total project cost is estimated at about US$375 million and 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. In 1996, a law was introduced in Egypt that authorized the private sector to build, own, operate and transfer electric power generation plants. Being one of the first IPPs in the country (following the Sidi Krir Power Project that was approved by IFC''s Board in June 1999), the project will help Egypt in its goal to privatize various infrastructure sectors, including power, and will serve as a model for future private power projects in the region.