Egypt has signed preliminary deals with Kuwait’s Alghanim International for two energy-related projects worth $1.6 billion, its prime minister said in a statement.

One initiative would see four gas-powered plants converted to operate on combined cycle, while the other would establish gas-powered plants with a total capacity of 900 MW.

The statement did not specify a timeframe for the projects. Alghanim is part of the Fouad Alghanim & Sons Group, one of the biggest conglomerates in the Middle East.

The government’s effort to encourage private investment to renovate the creaking national grid seems to be bearing fruit.