Orascom Construction said last week it expects to achieve financial close for the first phase of the $5 billion power plant it is building with Abu Dhabi's International Petroleum Investment Company (IPIC) by the end of the first quarter of 2016.Orascom's CEO Osama Bishai said: "this is a project that we are working on very aggressively right now."
He said that they are currently in discussions with banks for raising the project finance debt portion of the project.
Orascom Construction and IPIC, as 50/50 joint venture partners are expected to contribute the remaining equity for the project.
The clean coal-fired plant is being built on a fast-track basis near to the El Hamarawein port on the Red Sea coast. The plant is likely to generate between 3,000-4,000MW of power and it may be built in two phases. A plant of around 1,800MW-2,000MW could be built as part of a "$1bn-plus" first phase.
Bishai also said that the plant could take from 30-38 months to be built. The second phase would depend on market circumstances or its future development.