In Egypt, Misr Insurance Company, a renowned insurer in the Middle East and North Africa, has been awarded two contracts by the Egyptian Ministry of Electricity to insure two power plants in the north African country.
The Egyptian Ministry of Electricity issued two tenders to insure the establishment of two gas-fired power plants, namely the West Damietta plant and the Al Shabab power plant, with the total amount insured valued at $634 million, Zawya Thomson Reuters reported.
The five-year insurance policy will offer three years for the coverage against the construction risks and two years for maintenance.
The insurance company will provide cover against all the risks involved in installation such as fire, burglary, and theft as well as civil liabilities, riots, workers’ strikes, and dangers of construction, media reported.
Egypt: Power plants
The total insured for the West Damietta plant is distributed into two tranches. The first is worth $177 million to cover the risks related to imported equipment and the second tranche is worth $51 million, Zawya Thomson Reuters reported.
The second tranche will be used for the risks related to the production and installation supplies.
The total amount insured for the Al Shabab power plant is also separated into two tranches. The first is worth $344 million and the second is valued at $86 million.
Driving renewable power in Egypt
In other tender news, tenders for Egypt’s 500MW of renewable solar and wind energy projects are due to open bids this month.
The government will open tenders for three clean power projects – two solar and one wind – as it tries to achieve its target of using renewable energy for 20% of its energy needs within a five-year period.
Egypt has to date awarded 1,800MW of solar photovoltaic (PV) projects that drew attention from interested companies.
The country has also put 1,200MW of wind energy projects up for tender, but they are off to a slower start.
The Egyptian Electricity Transmission Company (EETC) and the New and Renewable Energy Authority (NREA) announced the separate tenders for 250MW of wind, 200MW of PV and 50MW of CSP capacity, law firm Eversheds LLP stated.