Egypt signs wind financing agreement

28 November 2016

Development banks lend on project

European Development Partners (EDP) has signed an agreement with the Egyptian government to finance a 200MW wind farm in the Gulf of Suez.

The four institutions making up EDP will offer a total of €267m ($283m) for the €343m project.

The allocations are:

  • European Investment Bank - €115m soft loan
  • KfW (Germany) - €72m soft loan
  • French Development Agency - €50m soft loan
  • European Union - €30m grant

The Egyptian government will provide the remaining €78m.

Egypt’s New and Renewable Energy Authority (NREA) is will carry out the project. It is due for completion in 2019.

Other wind projects in Egypt, such as a 250MW independent power project in the Gulf of Suez and 2,000MW of feed-in tariff projects, have made slow progress due to currency and financing challenges.

Germany’s Siemens and the US’ GE are also planning to install wind turbine manufacturing capacity in Egypt, as well as major wind farms.

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