Egypt on Tuesday signed a letter of intent with Singapore's Hyflux Ltd to establish electricity and water desalination stations in the economic zone of the Suez Canal at a total investments of 500 million dollars.

The capacity of the power plant is 457 megawatts and the water desalination station is 150,000 cubic meters, Chairman of the General Authority of Suez Canal Special Economic Zone Ahmed Darwish told a press conference following the signing.

The two facilities will be located near Sokhna Port, Darwish said.

For her part, Olivia Lum, Hyflux's chief executive officer, said that she visited the economic zone of the Suez Canal, adding that the area has huge investment potentials.