Egypt secures $296M EU funding for Gulf of Suez windfarm

Published November 27th, 2016 - 10:30 GMT
The European Development Partners include the European Union (EU), KfW for German Development Cooperation, the European Investment Bank (EIB) and Agence Française de Développement (AFD).
The European Development Partners include the European Union (EU), KfW for German Development Cooperation, the European Investment Bank (EIB) and Agence Française de Développement (AFD).

The Egyptian government has signed an umbrella agreement with European Development Partners to secure €267 million ($296 million) funding for implementation of a new large-scale windfarm in the Gulf of Suez area in Egypt.

With a capacity of at least 200 megawatt of renewable electricity generation the project is an integral part of the Egyptian long-term energy strategy to utilize the country’s enormous renewable energy potential, said a spokesman for European Development Partners.

The European Development Partners include the European Union (EU), KfW for German Development Cooperation, the European Investment Bank (EIB) and Agence Française de Développement (AFD).

On completion, the Gulf of Suez windfarm will generate 650 GWh of emissions-free electricity per year to cover the electricity needs of 370,000 Egyptians.

As per the deal, the EU will provide a grant of €30 million, while the Egyptian government will pump in €78 million for the  project, said the spokesman.

As lead donor, German Development Cooperation through KfW will provide a soft loan of €72 million followed by EIB with a soft loan of €115 million and AFD with €50 million.

This agreement will pave the way for the implementation of the windfarm project, which is estimated to cost €343 million ($381 million), he added.

 

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