• Reference: P-EG-FAA-012
• Approval date: 27/07/2005
• Start date: 06/11/2006
• Appraisal Date: 09/02/2005
• Status: OngoingOnGo
• Location: EL Kureimat Town
• Implementing Agency: RED SEA COMPANY FOR TOURISTIC PROJECT

Background

The Egyptian Electricity Holding Company (EEHC) has developed a Generation Expansion Plan (GEP) based on annual growth rate of 7.5 per cent in the short-to-medium term (2004/05-2011/12) to meet the increased demand and system reliability in the Unified Power System (UPS). The forecasting model takes into account the projected economic growth in the same period (5-6%/annum).

The study identified 19 power stations, with aggregate installed capacity of 13,009 MW, for commissioning in the period 2004/05 to 2011/12. Of the additional capacity, 12,464 MW will be from thermal power plants and the rest from Zafarana wind turbines (565 MW) and Nag Hammadi hydro power station (64 MW). The proposed El Kureimat Power Plant Project will contribute about 6 percent of the generation capacity.

Rationale

Egypt’s expanding economy relies on the availability of reliable and cheap electricity to function efficiently. Electricity demand has generally mirrored economic growth. The prospects for rapid economic growth, as a result of the favourable macroeconomic environment being offered by a renewed momentum in economic reform, underscores the need to ensure security of electricity supply. It is expected that a shortfall in installed generation capacity will emerge unless the proposed project is commissioned on schedule.

EEHC, which is responsible for the development of generation facilities in Egypt, has developed a generation expansion plan based on annual growth rate of 7.5% in the short-to-medium-term. This plan envisages a fast-track addition of 4,019 MW of generation capacity to be commissioned between 2004/05 and 2006/07 and additional 8990 MW of generation capacity to be commissioned between 2007/08 and 2011/2012 in order to meet the medium-term demand, to which the proposed project will contribute 750MW.

In line with the Government’s move towards efficiently exploiting its substantial natural gas reserves, the primary fuel of the proposed stations will be gas while light oil will be used in case of emergency. The combined cycle power plants will also enable Egypt to have needed capacity, at high efficiency, accompanied by low investment, low pollution, and a low gestation period. The efficiency of the combined cycle power plant is estimated at about 48 per cent compared to 33 per cent for the simple cycle based gas turbines.

Objective

The objective of the project is to increase generation capacity to partly meet the electricity demand in the short-to-medium term. The project, when completed, would contribute towards making available sufficient and reliable power to the various consumers including the households, agriculture, business and industries to improve the quality of life of the population and promote economic growth.

Description

The project will comprise the supply and installation of two gas turbines (2x250MW), two heat recovery steam generators and one steam turbine  (1x250MW), together with accessories.  The main fuel will be natural gas. However, the plant will also be designed to run on fuel oil as a back up. The project components include the following:

1.  Civil Works
2.  Gas Turbine Generator and Auxiliaries
3.  Steam Turbine Generator and Auxiliaries
4.  Heat Recovery Steam Generator & Auxiliaries
5.  Switchyard
6.  Environmental Monitoring
7.  Wrap-up Insurance
8.  Project Management

 

Benefits

When fully operational, the proposed project will provide 750 MW generation capacity to Egypt’s Unified Powers System, representing some 6 per cent of the country’s total electricity generation expansion during the period 2004/05-2011/12.  The additional electricity will be passed on to all consumers thorough the national grid. The Project will ensure that future Egypt’s electricity demand is matched by supply. Agriculture, health, tourism, and industry will directly benefit from the Project as costly power shortages and disruptions to economic activity will be avoided. 

NZABANITA Emmanuel Bukeri - OINF3

Finance source	Amount
ADB	UAC 150,782,154
Government	UAC 58,963,699
Delta	UAC 1,198
Total	UAC 209,747,052