The Abu Dhabi-based private Company Al Nowais Investments said it has signed a Memorandum of Understanding (MoU) to build Egypt's first coal-fired power plant in Ayoun Moussa in the Suez area, Reuters reported, quoting Hussain Al Nowais, Chairman of the UAE Company as saying, adding that the plant aims to meet largest Arab-populated country’s acute power shortage.

Al Nowais will lead a consortium to build the plant, of which Al Nowais will provide 70% of the capital, the Chairman told Reuters by phone, declining to give an estimated investment value for the project or funding details.

Such details will be finalised in the coming period, he added.

Hussain Al Nowais, chairman of Al Nowais Investments, and Gabr El-Desouky, chairman of Egypt's state-run power company EEHC have signed the MoU for the coal-fired plant.

"Egypt has opened the door for private investment in its power sector and we want to be an early investor," Al Nowais said, noting that talks are in progress with investors in Singapore, South Korea, China and Egypt to fund the remaining 30% of the plant.

No timeframe has been set for when the plant will built or become operational.

The coal will be sourced from international markets such as South Africa, Indonesia and others, Reuters added.