The Central Bank has confirmed two electricity projects and a finance guarantee of around $3.2bn, in order to pump 2,850 megawatts of electricity as part of the government’s five-year plan.
Laila Georgy, head of New and Renewable Energy Authority (NREA), told The Daily News Egypt the two projects are located in Dayrout city in Behaira governorate, and at the wind farms in Suez gulf. The projects are expected to be funded by private sector investments, by using a system called build-operate-ownership (BOO).
“The finance guarantee is worth about $2.5bn for Dayrout electricity project and more than $600 million for the Suez one,” said Georgy.
The Ministry of Electricity has sent an official letter to the Ministry of Finance, to ask for speedy approval on the financial guarantee for both projects, to reassure private sector investors.
“The committee which grants the guarantee is expected to hold a meeting next week to approve it officially. It is expected to include representatives from the Ministry of Finance,” said Georgy.
Minister of Electricity and Energy, Mohamed Saad Balbaa, said Dayrout project is planned to be established on 70 Feddans.
He added the project consists of three modules with a capacity of 750 Megawatts per module, which operates with combined cycle system producing a third of the energy without using any extra fuel.
Furthermore, the project in Suez will operate at a capacity of 2,000 megawatts.