Under the terms of the MOU, Marubeni and El Sewedy will conduct a feasibility study for constructing a high-efficiency ultra-supercritical coal-fired power plant in the West Mattrouh region for the utility.

The power plant is expected to contribute to the Egyptian Government’s aim to generate approximately 12.5GW of power from coal-fired plants by 2022 as part of its plan to diversify energy resources.

Reuters cited Marubeni spokesman as saying that the size and cost of the plant are due to be decided while the feasibility study will be completed within two years.

The MoU is as part of the Marubeni’s effort to strengthen its global power infrastructure business.

Marubeni is believed to support the development of a 4GW coal-fired power station, which would require an investment of more than 400 billion yen ($3.5bn), reported Nikkei business daily.

The MoU comes a day after Marubeni announced its plan to build a 400MW Bibiyana-III gas based combined cycle power plant in Bangladesh for Bangladesh Power Development Board (BPDB), a national power development entity.

Marubeni, till date, has signed engineering, procurement and construction contracts for more than 100GW of power plant projects including 40GW of coal-fired power plants.