Singapore-based Hyflux has been given a letter of intent for an engineering, procurement and construction (EPC) contract worth $500 million to construct the Ain Sokhna Integrated Water and Power Project in Egypt.

This letter of intent, given by the General Authority for the Suez Canal Economic Zone (SCZone), will be followed by signing of relevant contracts, the company said in a statement.

An  on-site  457 MW  combined  cycle  gas  turbine  power  plant  will  be  constructed  to generate power and supply electricity to the desalination plant. Excess power will be dispatched to the grid and go towards supplying the Egyptian’s governorates needs.

A 25-year operation and maintenance contract will be awarded to Hyflux for this plant, the statement said.

“The entry into the Egyptian market presents exciting opportunities for Hyflux. We are delighted to be awarded the project and honoured to be given this opportunity to work with SCZone. This project is significant to us because it is our first integrated water and power project abroad and demonstrates our ability to put together an innovative solution that is recognised internationally,” said Olivia Lum, executive chairman and group CEO of Hyflux.

This project is expected to have a material financial impact on Hyflux for the financial year ending December 31 subject to the signing of the relevant contracts, the statement said. – TradeArabia News Service