Acwa Power, the Saudi Arabia-based major developer of power and water desalination projects, has announced that it is set to invest $3 billion into Egypt’s electricity projects this year.

In a statement, the utility developer said that it has collaborated with Hassam Allam Holding Company to establish a 2.3-megawatt (MW) power plant in Luxor. The project will be built at a cost of $2.3 billion, with Phase One of the operation expected to start in the summer of 2022, followed by full commercial operation in the summer of 2023.

The Power Purchase Agreement (PPA) is under a build-own-operate (BOO) framework, Acwa Power added, pointing out that it was a 25-year term. It said that the project would be vital for meeting the increasing demand for electricity in Egypt over the next few years, particularly in the upper Egypt region.

The $3 billion investment will be allocated for implementing investments in the Upper Egypt governorates of Luxor, Aswan’s Benban Solar Park, and other projects, it added.