The leading insurer in MENA region, Misr Insurance Company has been awarded new contracts to insure two power plants in Egypt.
According to Adel Moussa – Managing Director of Misr Insurance, the company has signed the official contract with the Ministry of Electricity to insure West Damietta and Al Shabab power plants.
West Damietta plant is situated in about 200 kilometres (120 miles) north of Cairo; while Al Shabab is located 33 kilometres (20.5 miles) west of Ismailia City.
Egyptian Ministry of Electricity has tendered two bids to insure the establishment of the two power plants with total sum insured worth 4.97 billion Egyptian pounds (US$634 million), divided into 1.75 billion pounds for West Damietta plant and 3.22 billion for Al Shabab.
Upon the two insurance policies, Misr Insurance shall provide include insurance coverage against all the risks of installation such as fire, burglary, and theft as well as civil liabilities, riots, workers’ strikes, and dangers of construction.
Each insurance policy is a five-year term, encompassing three years for the coverage against the construction risks in addition to a two-year for maintenance.
For West Damietta plant, the total sum insured is distributed into two tranches, first is a USD-dominated worth US$177 million to cover the risks related to imported equipments. The second tranche is valued at 400 million Egyptian pounds dedicated for the dangers related to the production and installation supplies.
The West Damietta plant consists of four gas turbines with total capacity of 500 megawatts, seeking to increase the capacity to produce 750 megawatts through the conversion from the existing open cycle to combined cycle gas system.
Meanwhile, Al Shabab power plant’s total sum insured is also divided into two tranches; a USD-dominated worth US$344 million and Egyptian pound-dominated at value of 677 million pounds.
