Insurers in Egypt are competing to win an insurance policy for the second phase of West Damietta Power Plant Extension Project, sources near from the talks told Amwal Al Ghad.
According to the sources, the Egyptian Ministry of Electricity launched a tender of an insurance policy at total value of EGP 1.7 billion for West Damietta Power Plant Extension Project – Phase II.
The total value of the insurance policy is divided into two tranches, they added. The first tranche worth US$177 million is to go for providing insurance coverage against all risks related to the equipments purchased from international markets.
The second tranche is valued at 400 million Egyptian pounds, aiming to give insurance coverage against all risks related to production and installation items bought from local market.
West Damietta Power Plant currently has four gas turbines, with a capacity of 125 megawatts each. The second phase of extension project aims to convert the power plant operations to function with a combined-cycle system so as to increase its energy production capacity.
Furthermore, the sources said the policy is 5-year term, distributed as 3 years to provide insurance coverage for the construction period in addition to two further years for maintenance.
The sources expected that the list of competing insurers would include Misr Insurance Company and Arab Misr Insurance Group – GIG-Egypt.
Moreover, the sources referred that the insurance policy is to provide insurance coverage against all risks of fire, burglary, labourers’ strike, riots and civil unrest.
