The Egyptian Electricity Holding Company (EEHC) notified the Shanghai Electric alliance to hold a meeting on Thursday to begin negotiations on establishing a coal-fired power plant in Hamarwein with a capacity of 6,000 MW.
Sources at the company told Daily News Egypt that the meeting will be held with officials of the Chinese alliance to negotiate the price of purchasing power from the station, given that the alliance offered the lowest cost of establishment at $4.4bn.
The sources added that the meeting would bring together officials of the Belgian consulting firm Tractebel to discuss the financial and legal aspects of the contracts.
The official awarding of the contract will take place after the meeting, the source said, noting that the parties may disagree on terms, which would prompt the EEHC to call in General Electric to negotiate, which had the second best offer.
The sources said that the tender procedures and opening of the envelopes were carried out in transparency in the presence of the prime minister and a number of representatives of the companies.
A source at the alliance also said that Chinese and Egyptian banks will contribute in financing the plant, but refused to disclose their names until meeting with the EEHC on Thursday.