Arab Finance: Alcazar Energy Partners has reached financial close on its 500-megawatt (MW) Niat and Rasgha wind projects in Egypt, with a total project cost of $626 million, according to a press release.
This brings the company’s total investments in the country's electricity sector to more than $1 billion alongside the separately signed $420 million Gabal El Zeit privatization transaction.
Located in Ras Ghareb on Egypt's Red Sea coast, the Niat and Rasgha projects each have a capacity of 250 MW and are backed by a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC).
The projects have advanced into the execution phase following the issuance of the notice to proceed to Siemens Gamesa Renewable Energy (SGRE), which will supply the wind turbines and provide operation and maintenance services.
Alcazar Energy Partners acquired the development rights to the two projects, completed their advanced development, and arranged the financing. Meanwhile, Orascom Construction will serve as the balance-of-plant contractor.
The projects secured $436 million in debt financing from the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG), a subsidiary of KfW Group, with each lender providing one-third of the financing package.
The financial close follows the signing of the Gabal El Zeit privatization agreement in July.
Daniel Calderon, Co-Founder and Managing Partner of Alcazar Energy Partners, said: “Our job is to turn complex opportunities into projects that can be financed and built. Niat and Rasgha are an important step in that work and in our long-term commitment to Egypt. We are bringing together capital, technology and local expertise to expand electricity supply and support the country’s energy security.”
Richard Luijendijk, Senior Vice President Onshore at Siemens Gamesa, commented: “With Niat and Rasgha becoming our tenth wind project in the country, and with construction now moving forward, we are proud to continue supporting Egypt’s energy transition with reliable technology and strong local partnerships.”
