Annual Direct Normal Irradiation zones in Egypt (Source NREA)

In 1995, 2 prefeasibility studies were conducted based on parabolic trough and central tower technologies. In 1996, a SolarPACES START Mission was requested by the hosting New and Renewable Energy Agency (NREA) and the Egyptian Electric Authority (EEA) of the Government of Egypt, to provide information exchange by independent experts on solar thermal technologies applicable in Egypt. The START Mission recommendations served as the information basis and independent expert evaluation for Egypt’s subsequent application to the Global Environmental Facility, to support the identified 130MW Hybrid Fossil Solar Thermal (HFST) Power plant project at Kuraymat with private participation with a 50Mio USD support grant under GEF-OP7.

In 1996, it was agreed to implement the 1st solar thermal power plant. GEF granted the project consultancy services and expressed the willingness to cover the incremental cost. In 1998, the conceptual design and project concept paper were prepared. The consultancy services were divided into 2 phases. In 2000, the 1st phase was conducted and ended up by Issuing complete feasibility study report. A short list for the qualified and interested developers was set up. Due to the unexpected high rate of US$ exchange against LE and to avoid the lack of foreign currency in 2002, the government issued regulations for BOOT projects to minimize  the burden on the national treasury and reduce the envisaged risks. The new regulations could be briefed as follows:

• The required financing and its related annual cost shall be in local currency.

• The project financing can be in foreign currency, on condition that the annual re-payments shall be from export revenues achieved by the project.

In May 2003, A study was conducted by WB to assess the level of interest of the developers, in view of the a/m regulations. The outcomes were negative. In June 2003, NREA and World Bank agreed upon changing the approach of the project to be a governmental one. The private sector could participate in the O&M through a contract limited by 5 years. In Oct. 2003, a contract was signed with Fichtner Solar to conduct the 2nd phase of Consultancy services in view of the a/m approach. The new technical data of the project could be briefed as follows:

A general Procurement Notice was published in Feb. 2004. The Notice is addressed to interested bidders, interested consultants and any other interested entities request for additional information. 35 firms expressed their interest to be enrolled in the mailing list for PQD. In March 2004, the draft of the conceptual design report was sent to NREA for review together with a PQD draft for review and comment.

GEF has allocated a grant of nearly US$ 50m to cover the incremental cost in May 2004 and JBIC has expressed the interest to finance the balance of the plant. The project will be owned by NREA. There will be a role for the private sector through EPC, O&M contract for 5 years. NREA is in the phase of preparing Pre-Qualification Document and Tender Document. A General Procurement Notice addressed to the interested bidders & consultant was issued in Worldbank News letter in February 2004. 35 firms expressed the interest to be enrolled in the mailing list for the Request for Prequalification. The prequalification document and the Bid Document had been completed by August 2004.  In parallel NREA had investigated potential sources of co-financing.  On request of the financing institutiond the existing turnkey Bid Document in 2005 was split into two Bid Documents (one for the Solar Island and another one for the combined Cycle Island).  Fichtner is currently working to prepare these two Bid Documents. On August 16th 2005, NREA published a new Invitation for Prequalification, to be submitted by November 8th 2005. 2005

Download the Egypt START Mission Report (PDF 2.918 kB)