The Egyptian Ministry of Electricity and Renewable Energy will finalize General Electric’s (GE) proposal to construct a wind farm with a 2000MW capacity of power . A source with the ministry stated that the technical committee assigned to study the offer has been meeting over the past weeks to set the contract’s financial and operational conditions before submitting it to the Egyptian Cabinet in early November, reported Al Borsa.
Egypt will use an engineering, procurement and construction (EPC) contract to execute the project. Under the terms of the deal, GE will coordinate with banks to facilitate for foreign currency funding, while the state will be responsible for paying back the amounts according to stipulations in the agreement between the New and Renewable Energy Authority (NREA) and financing institutes. Subsequently, GE has arranged for around $2.2b with American Banks and European Financial Institutions to finance the project that is expected to take 7 years to complete.
NREA’s Chairman, Mohamed El Sobky, added that the authority is ready to negotiate with all the companies that presented offers to establish renewable energy facilities, with the aim of producing 20% of Egypt’s power from renewable sources by 2020.