Egypt firm wins EPC contract for Japan-funded Sharjah power plant
Elsewedy and Mitsubishi Hitachi Power Systems to build 1,026 MW natural-gas-fired GTCC power plant in Al Layyah
Egypt Stock Exchange-listed Elsewedy Electric and Japan’s Mitsubishi Hitachi Power Systems (MHPS) have won an engineering, procurement, and construction (EPC) contract worth $550m from Sharjah Electricity and Water Authority (Sewa).
The consortium will construct a 1,026.3-megawatt (MW) gas turbine combined cycle (GTCC) power plant in Sharjah's Al Layyah area.
In an Egypt bourse missive dated 29 March, 2019, Elsewedy Electric revealed that the company’s scope of work includes the implementation of 65% of project works. Alongside EPC, the contract covers the installation and erection of MHPS’s gas and steam turbine.
The company will also be responsible for works related to site preparation, levelling, construction, and site utilities. The project's operational commencement is due in mid-2021.
MHPS, a joint venture between Mitsubishi Heavy Industries and Hitachi, will deliver project management services, in addition to providing principal equipment, which includes two gas turbines, one steam turbine, three generators, and two heat recovery steam generators.
According to the stock market statement, the allocation of the EPC contract comes a day after export credit agency Japan Bank for International Cooperation granted Sewa a loan for the project, which will be co-financed by Societe Generale Tokyo Branch, ING Bank, and the Tokyo branch of Standard Chartered Bank.
The project, which will be insured by Japan’s Nippon Export and Investment Insurance, will be the first in Sharjah to be financed as an export loan.
Commenting on the contract win, Ahmed Elsewedy, president and chief executive officer of Elsewedy Electric said the contract follows a deal from Dubai Electricity and Water Authority (Dewa) for the Al Aweer H Station's Phase 4 power plant.
Sewa currently operates a 2,850 MW plant powered by natural gas and oil in in Sharjah.