Orascom Construction signs $20m contract for West Nile Delta gas project
National Steel Fabrication, a subsidiary of Orascom Construction (OC), was awarded a $20m contract to manufacture and supply structural steel for the West Nile Delta gas development project.
“We [OC] are also pleased to receive a large order to fabricate and supply the steel structure for an important gas development in Egypt, and look forward to further participating in this sector through our construction group and NSF,” he added.
In January, the company signed contracts to covert two power plants, in Assiut and West Damietta, from simple cycle to combined cycle.
The capacity factor of the Assiut power plant is 1,000 MW, while West Damietta’s capacity factor is 500 MW. Converting the plants will increase their combined capacity factor by 50%, to reach 2,250 MW. OC stands to earn a reported $420m in the deal.
The construction company and the German engineering company Siemens are also building two combined cycle power plants, each with a 4,800 MW capacity factor. Orascom has claimed these two power plants are the largest in the world. The first power plant is located in Kafr El-Sheikh governorate, while the other is being constructed in the New Administrative Capital.
The contract value for each power plant is €2bn. OC will earn €1.6bn in the combined contracts. OC provided a 15-year financing package to the Egyptian Electricity Holding Company for the full payment of its €1.6bn.
OC also signed two contracts to develop projects in Algeria for a total of $180m. In the first project, OC will construct a Greenfield cement plant, while in the second OC will conduct infrastructure work for a new industrial complex.
(Source: Daily News Egypt)