Deal signed for 250-MW wind farm in Egypt

Egyptian firm Orascom Construction Ltd (EGX:ORAS) has struck a deal to build a 250-MW wind farm in Egypt as part of an alliance with French utility Engie (EPA:ENGI) and Japan’s Toyota Tsusho Corp (TYO:8015).

The Gulf of Suez project will be developed on a build-own-operate (BOO) basis under a 20-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company, Orascom said on Tuesday. The Cairo-headquartered construction company will own a 20% interest in the scheme and will be responsible for all construction activities. The other partners hold 40% each.

Construction of the plant in Ras Ghareb municipality, in Cairo's Red Sea Governorate, is conditional on the project reaching financial close and is expected to take about 24 months.

Financing for the USD-400-million (EUR 343.9m) scheme is to come from Japan Bank for International Corporation (JBIC) in coordination with Sumitomo Mitsui Banking Corp and Societe Generale (EPA:GLE). Financial close is anticipated to be reached by the end of this year.

After bringing the wind park online, the trio will operate and maintain it for a 20-year term.

(USD 1.0 = EUR 0.860)

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