- Orascom Construction has signed a 25% stake in a 500MW wind project in Egypt.
- The farm is expected to commence construction in 30 months.
- The EBRD is set to invest $50m in the project.
Egyptian company Orascom Construction has signed a 25 per cent stake in a 500 MW wind power project in Ras Ghareb, Egypt. The wind farm is being implemented under a BOOT (Build, Own, Operate, Transfer) model by French company Engie and the Japanese Toyota Tsusho Corporation/Eurus Energy Holdings Corporation.
The three companies have set up an SPV Red Sea Wind Energy to produce wind energy in the Suez Gulf. The project is, however, still in its financial mobilization phase. The European Bank for Reconstruction and Development (EBRD) plans to support the project with a $50 million loan. However, the loan is subject to an active turbine management program (ATMP) and a wind turbine shutdown program to reduce the impact on biodiversity, especially birds.
After the financial mobilization phase, Orascom Construction estimates construction of the Ras Ghareb wind farm to commence in 30 months. Osama Bishai, the CEO, Orascom, stated, “we are proud to continue delivering another project that will contribute to Egypt’s sustainable energy development. This project also underscores our strategy to continue investing in infrastructure that creates new construction opportunities with long-term recurring revenues.”
The consortium in 2019 successfully constructed a 262.5MW wind project in Ras Ghareb. The wind farm received financial support from the Japanese Bank for International Cooperation (JBIC), Sumitomo Mitsui Banking Corporation, Société Générale Commercial Banks, Commercial International Bank (CIB) and Attijariwafa Bank.