Orascom Construction Company, Engie, and an unspecified Japanese firm will build a 250 megawatt (MW) wind farm in Ras Ghareb, Amwal Al Ghad reports.
The project is estimated to cost approximately $465.3 million.
The wind farm will be built under the build, own, operate (BOO) framework. The group has signed a 20-year power-purchasing agreement (PAA) with the Egyptian Electricity Transmission Company (EETC).
The Ras Ghareb wind farm will be privately financed and operated.
Orascom is responsible for the construction and operation of the wind farm and will finance 20% of the project, according to Amwal Al Ghad.
The rest of the project will be financed by the Japan Bank for International Cooperation (JBIC) through an agreement with Societe Generale Bank and Sumitomo Mitsui Banking Corporation.
The parties to the project expect to finalize funding by the end of 2017. After securing the necessary financing, the company will begin construction work. Construction is expected to take two years.
Ras Gharab is located on the western shore of the Gulf of Suez, approximately halfway between Ain Sokhna and Hurghada.
The New and Renewable Energy Authority (NREA) recently announced that it was partnering with Abu Dhabi Future Energy Company (Masdar) to construct a similar wind farm under a BOO framework, Al Mal News reported in mid October.