Egypt's Citadel Capital proposes $1.3 bln electricity station

CAIRO Wed May 21, 2014 1:36pm EDT

CAIRO May 21 (Reuters) - Egypt's private equity firm Citadel Capital has tendered a proposal to the government to build a station to generate electricity to help ease Egypt's energy crisis, the state's MENA news agency said.

Citadel's chairman Ahmed Heikal told MENA the project will cost $1.3 billion and would target one gigawatt of electricity.

Egypt has been hit by a political and economic turmoil since 2011 following an uprising that ended Hosni Mubarak's 30-year rule. The country has since suffered from a gas shortage that has caused frequent power cuts, which are expected to become more acute during the coming three months.

Earlier this year Citadel completed a 3.7 billion-pound program of buying additional stakes in firms it has investments in, which gave it majority stakes in its five focus areas of energy, transportation, agrifoods, mining and cement.

Citadel has been hit in recent years by the economic turmoil in the region. Last month it finalized an equity capital increase to give it a total of 8 billion Egyptian pounds ($1.12 billion).

($1 = 7.1249 Egyptian Pounds) (Reporting by Ali Abdelaty, Writing by Yasmine Saleh; Editing by Elaine Hardcastle)