ENGIE wins renewable energy project in Egypt and will develop a 250 MW wind power park.
ENGIE has signed a contract to build, own and operate (BOO) a 250 MW wind farm together with its consortium partners Toyota Tsusho Corporation/Eurus Energy Holdings Corporation (40%) and Orascom Construction Limited (20%).
The wind farm will be located in Rhas Gharib on the Gulf of Suez, an optimal site with more than 60% of gross capacity factor. The energy will be sold under a 20-year Power Purchase Agreement (PPA) to the Egyptian Electricity Transmission Company (EETC).
Total investment cost of the Gulf of Suez project amounts to approximately USD 400 million. Financing will be provided by the Japanese Bank for International Corporation (JBIC) in coordination with commercial lenders SMBC and Sociéte Générale. In addition, the Japanese Export Credit Agency, NEXI is providing an insurance cover for the commercial lenders. Construction is expected to start end of 2017 and will take approximately 24 months to complete.
Gulf of SUEZ is the first wind farm tendered on a BOO scheme and is part of the Egyptian government’s drive to increase the share of renewables in the energy mix with a target wind generation capacity of 7 GW by 2022. The plan envisions significant private sector involvement, with the private sector taking the lead on more than 60% percent of the plan.
Bruno Bensasson, CEO of ENGIE Africa commented : “Egypt is a country which expects a strong power demand growth in the next years to accompany its economic and social development. With this large wind project, ENGIE becomes an important player in Egypt’s ongoing renewable energy transition. Gulf of Suez is definitely proof that good regulation can bring foreign investment at a competitive price to the benefit of African countries. For our Group it is an opportunity to scale up our presence in a strategic country with a long-term contracted asset guaranteed by the government. “
In Egypt, ENGIE remains committed to develop additional generation capacity and is looking to extend its energy services activities and its offer for sustainable cities, taking the opportunity of the Government’s “New Cairo” and “New urban planning of Suez Canal area” programs.
ORASCOM CONSTRUCTION CONSORTIUM TO DEVELOP A 250 MW BUILD-OWN-OPERATE WIND FARM IN EGYPT
Orascom Construction Limited announces that its consortium with ENGIE (France) and Toyota Tsusho Corporation/Eurus Energy Holdings Corporation (Japan) has signed a contract to develop, construct and operate a 250 MW wind farm in Ras Gharib, Egypt. The project will be executed on a build-own-operate (BOO) basis under a 20-year Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company. Orascom Construction will have a 20% stake in the project and will execute the construction of the wind farm.
This wind farm marks the first renewable energy Independent Power Producer (IPP) project of its kind and size in Egypt. The total investment cost amounts to approximately USD 400 million. Financing is expected to be provided by Japan Bank for International Corporation (JBIC) in coordination with Sumitomo Mitsui Banking Corporation and Société Générale under a Nippon Export and Investment Insurance (NEXI) cover.
The project is expected to reach financial close by the end of 2017, after which construction will commence and take place for approximately 24 months. Upon completion, the consortium will operate and maintain the wind farm for 20 years.
Osama Bishai, CEO of Orascom Construction, commented, “This project underscores our strategy to pursue investments in the infrastructure sector that create new construction opportunities and long-term value for shareholders, and expands our growing presence in the power market to the renewable energy sector. We are also proud to collaborate with our international partners, ENGIE and Toyota Tsusho/Eurus Energy Holdings, on this key project.