Three solar companies have succeeded in the financial closure for the first phase of the feed-in tariff project, and their financial models were adopted by the cabinet.
Chairperson of the Egyptian Electricity Holding Company (EEHC) Gaber Desouky told Daily News Egypt that the cabinet approved the three models and agreed to sign contracts with them according to the conditions of the first phase of the project.
He added that the official announcement will be coming within one week, noting that the companies that were not successful will be considered for the second phase of the project.
Nine companies were committed to the regulations of the first phase of the project, which stipulated that companies secure 85% of finance from foreign banks and 15% from local banks. According to the regulations of the first phase, arbitration is set to be taking place in Cairo. The price of energy from the plants is estimated at 14.32 cents per KW.
Desouky explained that the second phase of the feed-in tariff project is ongoing, where all solar energy companies are scheduled to present letters from foreign banks with the approval for financing their projects before the end of April.
The terms of the second phase of the feed-in tariff project includes securing 70% of required financing from foreign sources and 30% from local financiers.