Egypt’s Ministry of Electricity promised to complete the contract with Siemens for the construction of wind farms with a capacity of 2,000 MW if the company agrees to cut the tariff for buying output power, according to Daily News Egypt.

In addition, both parties agreed to all the technical aspects of the project; yet the financial aspect remains an obstacle to completing the agreement, where the German company offered a price of $0.06 per 1 kWh, which was refused by the ministry, according to sources at the Ministry. In addition, the ministry is set to buy power from the Gulf of Suez’s wind farm, which is being implemented by Toyota, at a price of $0.05 per 1 kWh.

The New and Renewable Energy Authority (NREA) has gone a long way in agreeing with banks to fund the first phase of the project, which has a capacity of 180 MW, with investments of $202.5m. The high tariff and shortage of liquidity at the Egyptian Electricity Transmission Company  (EETC) remains blocking the deal. It is worth noting that the wind farm was one of the projects presented during the economic summit in Sharm El-Sheikh in 2015.