The Overseas Private Investment Corporation (OPIC) today approved $87 million in financing to Lekela Egypt Wind Power BOO S.A.E.
The latest move by the U.S. Government’s development finance institution comes to support economic growth in Egypt through the development of critical power infrastructure. The support is prospected to mobilize more than $250 million in additional capital to finance the project.
“Energy security remains a critical barrier to sustainable growth in Egypt,” said OPIC Acting President and CEO David Bohigian. “By persifying the country’s energy sources, decreasing costs to consumers, and enhancing power generation capacity, the project will expand electricity access in Egypt—creating economic opportunities that empower the Egyptian people.”
The OPIC financing support is also expected to enhance construction, and operation of a 250 MW wind power plant near the Gulf of Suez, Egypt.
In addition to developing other sources of energy, Egypt is already investing in upgrading its electricity infrastructure. Earlier, The head of the Egyptian Electricity Transmission Company (EETC), Sabah Mashali on Wednesday announced that her company was targeting EGP 19.55 billion investments in the budget of the fiscal year 2019/2020.
"These investments are planned to improve the existing grid though replacement and upgrading of electricity networks in Egypt," she added, according to the Middle East News Agency (MENA).
The planned projects will add 24,625 megawatts to Egypt’s National Electricity Grid (NEG) during FY19/20.
In addition, Egypt has encouraged foreign investment in the field. Last month, officials announced that they were considering offers from a Blackstone Group unit and Edra Power Holdings Sdn Bhd of Malaysia to take over three power plants co-built by Siemens AG -- a move that could cut the North African nation’s debts while bringing in much-needed foreign investment.
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