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24 November 2016
Cairo — Within the framework of development cooperation in the field of renewable energy, the European Union (EU), KfW for German Development Cooperation, the European Investment Bank (EIB) and Agence Française de Développement (AFD), have jointly as European Development Partners, signed an Umbrella Agreement with the Arab Republic of Egypt to secure financing and pave the way 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.
The Gulf of Suez windfarm will generate 650 GWh of emissions-free electricity per year to cover the electricity needs of 370,000 Egyptians. The project will contribute to climate protection by preventing CO2 emissions of about 288,000 tons per year and make a significant contribution to the Egyptian Government’s objective to produce at least 20 % of energy out of renewable sources by the year 2022.
The project budget amounts to 343 million Euros, of which 267 million Euros are planned to be provided by the European Development Partners: The EU will provide a grant of 30 million Euros and the Egyptian government has allocated 78 million Euros to the Gulf of Suez windfarm project. German Development Cooperation through KfW is providing a soft loan of 72 million Euros as lead donor. EIB is providing a soft loan of 115 million Euros and AFD is providing a soft loan of 50 million Euros.
The Gulf of Suez project will be implemented by Egypt’s New and Renewable Energy Authority (NREA) and is expected to have a total installed capacity of at least 200 MW commissioned by the end of 2019. Building on the experience of a first wind power project financed by European donors this new project is also expected to feature state of the art bird protection measures using a radar-based “shut-down on demand” system.
H.E. Minister of International Cooperation in Egypt Sahar Nasr and the European partners including, French ambassador to Egypt, André Parant, Head of the cooperation of the EU Delegation to Egypt, Mr. Diego Escalona Paturel, Mr. Bukhard Hiz, Director of KFW Cairo Office, and Director of EIB Egypt office Christophe Lucet have jointly signed the Umbrella Agreement on Wednesday 23.11.2016 in the Egyptian Ministry of International Cooperation premises.
For more information please Contact:
Programme Manager: Ahmed El Beltagui Ahmed.ELBELTAGUI@eeas.europa.eu
Acting Press Officer, Najlaa AbdElBary: Najlaa.email@example.com
KfW (lead donor):
Programme Manager: Joschka Greve, Joschka.Greve@kfw.de