The EIB and the Arab Republic of Egypt signed a loan agreement of €115 million (US$124 million) for financing a windfarm in the Gulf of Suez to further expand energy generation from renewable resources.
The windfarm will contribute to meet growing electricity demand using sustainable wind energy. In the presence of Dr. Sahar Nasr, Minister of Investment and International Cooperation and European Union Delegation Chargé d’Affairs, Reinhold Brender, the financing agreements were signed in Cairo by Mr. Heinz Olbers, EIB Director of operations in the Neighbourhood Countries and Dr. Engineer Mohamed Mousa Omran Executive Chairman of New and Renewable Energy Authority.
Heinz Olbers, European Investment Bank’s Director of operations in the Neighbourhood Countries, said:
“The EIB is proud to finance the Gulf of Suez windfarm which contributes to environmental sustainability and climate change mitigation. The project is in line with the Bank’s objective to provide more finance to renewable energy projects. The European Investment Bank is the world’s largest financier of climate action; last year we provided €20.7 billion (US$22.3 billion) for climate related investment across Europe and around the world.”
The Gulf of Suez windfarm project involves the design, construction and commissioning of a large-size onshore wind farm of about 200 MW located on the west bank of the Gulf of Suez, some 400 km southeast of Cairo with up to 100 turbines will be installed. The site, of a size of around about 57 km², is characterized by its arid desert conditions and has very favourable wind resources.
The project is financed by European Finance Institutions; European Investment Bank (€115 million (US$124 million)), KfW (€72 million (US$77.7 million), including a €10.5 million (US$11.3 million) grant), Agence Française de Développement (€50 million (US$54 million)) and the New and Renewable Energy Authority. The European Commission provides a grant of €30 million (US$32.4 million) to the project.
EIB’s lending activities in the Mediterranean region in general and Egypt in particular are based on a Mandate from the European Union – the External Lending Mandate (ELM) currently covering the period 2014/2020 – through which the Bank works together with the EU and the government of Egypt to support socio-economic development in the country.