The Egyptian government has signed a deal for the construction of a 2000-3000 MW coal plant on the Red Sea coast.

The plant near the port of El Hamarawein will be built by a consortium of Abu Dhabi’s International Petroleum Investment Company and Egypt’s Orascom Construction.

The plant forms part of the government’s attempts to increase power generation in Egypt. The country has been plagued by power cuts, caused mainly by shortages in natural gas.

Electricity Minister Mohamed Shaker has said that he wants to cut the country’s reliance on gas and fuel oil for power generation from the current 90 per cent to 62 per cent by 2020 and in April the government approved the use of coal for industrial power generation.

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