Adenium Energy coalition plan to conclude a deal with a British bank to finance 85% of the cost of establishing a solar power plant in Aswan according to the feed-in tariff system.
The coalition is close to concluding the deal with a British bank to finance a 50MW capacity solar power plant with investments worth nearly $100m. Contracting will be concluded within two weeks, head of the business financing sector at Triangle Electrical Services Mohamed Ali told Daily News Egypt.
He explained that the bank has no problem with the arbitration item in case of a conflict, though this is currently an issue for many investors and companies in Egypt. The coalition wants to reach financial closure for the project by the end of September; the agreement to buy energy will be signed with the Egyptian Electricity Transmission Company (EETC) in October.
The coalition between Adenium Energy, Triangle Electrical Services, and Bengoah was formed from 136 companies and coalitions to implement solar and wind energy plants according to the feed-in tariff system, with 4,300MW capacities and investments of nearly $7bn.
Ali added that the company will begin negotiations with local banks within a few days in order to collect part of the project’s funding. The coalition has been negotiating with four local banks and will conclude the agreements after signing the contract with the British bank.
He explained that the State Council must continue the approval of purchasing energy in order for the company to be able to sign it on the deadline of the projects’ financial closure. The government must issue guarantees to provide investors with US dollars, especially after companies have agreed to the current conditions. The Ministry of Electricity has placed obstacles and impossible conditions on the agreement for purchasing energy with solar energy companies according to the feed-in tariff system, including arbitration inside Egypt and obtaining 85% of the costs through foreign banks.
Adenium Energy is the second company to announce that it will continue the projects in the first phase of the feed-in tariff after Karm Solar which announced its support and commitment to the contractual as well as technical rules specified by the government. This stresses its commitment towards the Egyptian market. It has also announced its readiness to conclude the financial closure before the October deadline.