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Hassan Allam snaps management of solar energy projects services in Benban - Daily News Egypt

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Hassan Allam snaps management of solar energy projects services in Benban

Companies to pay $4,500 per MW, including 8% obtained by the NREA and EETC

Hassan Allam Holding has won the management of services and facilities of the new solar power projects in Benban, Aswan, following a competition with a number of local and international companies put forward by investors.

The heads of solar power companies said that Hassan Allam was awarded the project, after being chosen by all companies working within the feed-in tariff projects framework in Benban. The company will handle planning the regulations and organising all requirements of the companies, which include, water, waste water, fences, employees recruitment, housing, infrastructure, traffic, and community services.

They told Daily News Egypt that all companies will meet on Monday with representatives of Hassan Allam to present the action plan and discuss all the requirements of the companies and investors, including safety and community services.

According to the heads of solar power companies, the agreement of the cost-sharing agreement includes an estimate cost of $4,500 per MW. This value includes 8% obtained by the New and Renewable Energy Authority (NREA) and the Egyptian Electricity Transmission Company (EETC) as expenses for supervision and appointment of an external control expert.

They pointed out that a committee was formed by electing representatives of seven companies in Benban until announcing Benban Association. Those seven companies include Elsewedy Electric, Acwa Power, and Infinity Solar.

The heads of solar energy companies said that the NREA agreed to be part of the committee to ensure credibility and transparency, especially as the cost-sharing agreement was amended.

The number of companies participating in the feed-in tariff projects in the first and second phase of the project amounted to 33 companies. They aim to collectively implement solar plants with a total capacity of 1,800 MW through several plants outputting 20-50 MW.

Work has started on the second phase of the projects in 28 October in 2016. The price was set at 7.88 cent per KW/h from projects producing 500 KW—20 MW, while for projects producing between 20 and 50 MW, the price was set at 8.4 cents per KW/h.

According to the controls of the second phase of the tariff programme for renewable energy projects, the investor is committed to achieve financial closure of the project within a year.

The controls also include the financing of solar projects by 70% from foreign bodies and 30% from local sources.

According to the agreement, the arbitration in the event of any dispute between the EETC and investors within the Cairo Regional Center for International Commercial Arbitration, with the possibility of being transferred to Paris, France, if approved by the contracting parties.

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