This paper focuses on Egypt's three independent power projects (IPPs), evaluating the context in which they were developed as well as how the context has changed. Initially the Egyptian government planned a series of 15 gas-fired, steam cycle, independent power projects. The first three, developed by InterGen, Edison and Electricite de France (EdF), yielded among the lowest generation tariffs across the developing world at US$0.025 per kilowatt hour (kWh). After the currency devaluation of 2002-2003, however, plans were shelved. Current plans, through to 2007, are now to be executed by the state-owned Egyptian Electricity Holding Company (EEHC), with concessionary funding provided by multilateral and bilateral agencies. Although capacity charges (in pound equivalency) have doubled, the power purchase agreements (PPAs) signed with each of the IPPs have held. Furthermore, a new regulatory body has had no impact on the existing contracts. While the original developers have sold their equity stake, new firms, with an increased appetite for risk, are stepping in to take their place. Meanwhile Egypt's liquefied natural gas (LNG) industry has developed over night; in just 2 years the country has become the world's sixth largest exporter, which raises questions about the long-term sustainability of gas-fired plants. (c) 2006 Elsevier Ltd. All rights reserved.