INVESTMENT WATCH- ACWA, Hassan Allam sign PPA for USD 2.3 bn power plant: The Egyptian Electricity Transmission Company has signed a key power purchase agreement (PPA) with Saudi Arabia utility developer ACWA Power and Hassan Allam Holding for a 2.3 GW, USD 2.3 bn power plant, ACWA said in a Thursday statement. The Luxor plant, which will run under a build-own-operate (BOO) framework, is expected to come online in 2022 and operate at full capacity by 2023, ACWA said. It will help meet the growing demand for electricity in southern governorates.

The PPA comes after talks on the 2.3 GW plant had previously stalled after it was pushed to the ministry’s 2022-2027 five-year plan from the 2017-2022 plan due to a current generation surplus. “Signing the PPA today represents a significant step in the development of the project, more importantly it demonstrates the commitment of the Egyptian government to encourage the participation of the private investors in infrastructure projects,” ACWA CEO Paddy Padmanathan said. Reuters and The National also took note.