Developers working on photovoltaic (PV) solar projects under Egypt’s feed-in tariff scheme are informing Egyptian authorities on 30 June whether they expect to reach a financial close by the October deadline for the first round.

They must submit a full financing plan for their projects, with letters from lenders.

It is thought that less than 10 developers, who are relying more on local finance, will be able to go ahead. Egypt’s Commercial International Bank has told local press it will finance two projects, and is considering a further seven.

A large number of developers are unable to participate due to differences over arbitration clauses in the power purchase agreements (PPAs). They will be moved into the second round, for which tariffs have yet to be announced.

The Washington-based International Finance Corporation (IFC) pulled out of financing several projects in the first round as it could not accept local arbitration. International arbitration is standard, but has been removed from the final versions of the PPAs.

Other development banks could also pull out.

Developers working on 10 solar schemes in Minya West Nile are at an earlier stage of development, and have not been affected by the international arbitration issue.

A 250MW wind project in the Gulf of Suez is seeing delays due to the issue, but conventional power schemes are not thought to be affected.