Egypt inaugurates power plant, two years late

Prime Minister Ibrahim Mahleb and a host of other dignitaries held a ribbon-cutting ceremony Wednesday to celebrate the opening of the Ain Sokhna Power Plant, a project originally scheduled for completion by June 2013.

The power station consists of two 650 megawatt turbines that can be powered by natural gas or mazut. According to announcements from the Minister of Electricity, the first turbine went into service in October 2014, although a Wednesday statement from the cabinet said the first unit began operating in March 2015, and the second in April. 

In 2008, when Egypt began seeking financing and contractors for the project, the World Bank estimated the it would cost US$1.66 billion. According to a cabinet statement, Mehleb reiterated this figure Wednesday, noting that the investment cost of the plant was around LE9.6 billion. However, as of April 2015, the World Bank estimated project costs had climbed to US$2.19 billion.

The African Development Bank, the Arab Fund for Development and the International Bank For Reconstruction And Development have provided a combined US$1.36 billion in financing, with Egypt supplying the rest of the funds, according to World Bank data.

For years, Egypt has suffered from a shortage of electricity, especially during the hot summer months, when demand peaks. Households and businesses nationwide face blackouts which can last hours every day.

The current administration has vowed to tackle the problem. During the opening ceremony, Mehleb noted that the newly inaugurated power plant is part of a five-year plan (from 2012 to 2017) to meet the country’s electricity needs.

The government has courted foreign investment in the electricity sector, struck deals to import natural gas, scrapped legislation banning coal imports, set a feed-in tariff for renewable energy projects, and announced plans to build a nuclear power plant.