Sources with the New and Renewable Energy Authority (NREA) stated that NREA along with the Egyptian Ministry of Finance completed drafting the Power Purchasing Agreement (PPA) for phase II of the energy purchase Feed-in-Tariff (FiT) program, reported Al Mal News. The NREA sent the PPA draft to all the participating companies to review with the international funding institutions.

Egypt’s State Council granted a primarily approval for the PPA. Egypt also finalized the annex related to international arbitration and it was sent to the international banks.

The terms for phase II included the necessity for investors to finalize the financial closure within a year for solar projects and 18 months for wind projects. It also stated that investors should secure 60% of the wind power projects’ fund and 70% of solar power projects’ fund in foreign currency.

This comes as Norway’s Scatec Solar declared that it will participate in phase II of the program as it will establish a solar power plant with a production capacity 50MW in Benban, Aswan.