A consortium of Egypt's El Sewedy Electric Co and Japan's Mitsubishi Hitachi Power Systems (MHPS) has been awarded construction and engineering contracts worth $550 million for a combined cycle power plant project in Sharjah. The 1,026.3 megawatt gas-fired combined cycle power project is located in Al Layyah in Sharjah and shall start producing energy by 2020, the Egyptian company said in a press release on Sunday. The project is the first EPC-plus-finance power project in the UAE with the support of Japan's export credit agency Japan Bank for International Cooperation (JBIC), the release added. The power plant will consist of one power block made by Mitsubishi Hitachi contains two M701F gas turbines, two heat recovery steam generators(HRSG), one steam turbine, and three generators, the release read. Mitsubishi Hitachi said in a separate press statement last week that the project involves the expansion of the existing 2,850 MW power plant operated by Sharjah Electricity and Water Authority (SEWA) in Layyah. Layyah plant is fuelled by natural gas and oil and also includes a desalination component. El Sewedy said in its statement that it will carry out 65 percent of the project works, including engineering, procurement, and installation of balance of plant in addition to the erection and installation of the Mitsubishi Hitachi's gas and steam turbines. In addition, it will be responsible for the site preparation, levelling and the civil, construction, and site utilities for the project. Demolishand relocation work is also included within the existing Al Layyah power station. Water structure with off-shore works is also managed by El Sewedy. JBIC had signed a buyer's credit agreement with Sharjah Electricity and Water Authority last week for the project, which is being co-financed by Societe Generale, ING Bank, Standard Chartered. The co-financed portion will be covered by insurance from Japan's Nippon Export and Investment Insurance (NEXI).
