Saudi Arabia-based ACWA Power targets negotiating over US$150 million loan to fund two projects to generate power from new and renewable energy, firm’s country manager Hassan Amin said Tuesday.
Speaking to Amwal Al Ghad, the official stated that the two projects are set to be established with total cost of US$200 million; 75% to be provided by banks and 15% will be provided by self-finance, Amin clarified.
He added that the priority will be given to the local banks as the feed-in tariff (FIT) has been determined to be with the Egyptian pound.
The Saudi power and water project developer has agreed upon the two projects with the Egyptian government. The projects are set to generate power from solar and wind powers.
Amin said that the company is to finish the procedures of receiving the land, in Suez Canal region, on which wind farms will be built with the capacity of 100MW. In addition, a solar power plant is set to be established in Aswan governorate.
Official Amin added that ACWA Power is waiting for the power purchase agreement (PPA) , set to be issued by the government within the upcoming two weeks, to start the procedures with banks to get the finance for its projects and provide comprehensive feasibility studies for the projects.
ACWA Power is the first company to sign the concession contracts among other firms bidding to set up renewable energy projects in Egypt.
During Egypt’s March Economic Summit, ACWA Power has signed memorandum of understanding to establish a power station generating 2000 megawatts of electricity through the use of coal, costing $7 billion. The power station is scheduled to expand to generate 4000 megawatts of electricity.
