Hyflux gets letter of intent for Egypt water and power project

SINGAPORE water treatment company Hyflux has secured a letter of intent from the General Authority for the Suez Canal Economic Zone to construct the Ain Sokhna Integrated Water and Power Project in Egypt.

The project involves the engineering, procurement and construction (EPC) as well as the operation and maintenance (O&M) of the planned facilities.

Hyflux will take on the EPC under a contract valued at US$500 million. The company will also be awarded a second contract for the O&M of the facilities over a 25-year period.

Construction of the project will begin following the finalisation of the EPC contract terms.

The Ain Sokhna project includes a desalination plant with 150,000 cubic metres per day of production capacity.

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 meeting the Egyptian governorates' needs.

Subject to the signing of the relevant contracts, the project is expected to have a material financial impact on Hyflux for the financial year ending Dec 31, 2016.