Egypt’s New and Renewable Energy Authority (NREA) is set to open financial bids from developers to build a 200MW wind farm project in the Zafarana region by the end of 2010.

The tender was launched six months ago with a request for qualification (RFQ). According to an NREA official, four to six companies submitted bids for the scheme.

Technical bids were opened in July and NREA has shortlisted companies that meet the technical requirements of the project. Those companies that pass the technical round will have their financial bids opened. NREA expects to select a winning bidder by early 2011.

Demark’s Calpro is consultant on the project and the wind farm has already secured financing. The project costs are expected to total about E300-350m ($402.5-469.6m).

The government will cover about 25 per cent of the capital cost, while the remainder will be provided by Germany’s Kreditanstalt fur Wiederaufbau (KFW), the European Investment Bank (EIB) and the European Commission.

Egypt already has 550MW in wind farm capacity online, predominantly in the Zafarana region. After the 200MW project, NREA is developing another wind farm in Zafarana, with a capacity of 250MW. It will be part-financed with debt from Japan International Co-operation Agency (JICA).

NREA is also working with an Italian cement company, Italcementi, on an off-grid wind farm. The company owns a large cement factory in Egypt and intends to use electricity generated by the wind project to power the facility.

While the proposal remains at an early stage, Italcementi intends to develop a facility with a capacity of 100-200MW.