The Ministry of Electricity will meet with international financing institutions within a few days to discuss providing loans for financing the second phase of the feed-in tariff projects.
The chairperson of the New and Renewable Energy Authority (NREA) Mohamed Salah El-Sobky said they will meet officials and representatives of international financing institutions to answer their questions concerning the second phase of the project, which is scheduled to start on 28 October.
He added that all the international financing institutions will participate in the meeting. They include the International Finance Corporation (IFC), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), African Development Bank (AFDB), US Agency for International Development (USAID), Participatory Development Programme in Urban Areas (GIZ) and KfW Development Bank.
El-Sobky pointed out that the eligible investors for the feed-in tariff projects will not apply technical studies to financial institutions again, but rather their financial studies. He continued that the financial institutions have prepared a number of scenarios of the feed-in tariff projects during the last period, so as to prevent any difficulties that may face investors when borrowing.
El-Sobky said that the first phase of the project will last until 26 October, and the companies that will stick to the projects’ requirements and conditions will sign the power purchase agreement with the government. Those companies which will not able to complete the financial closure will take part in the second phase, scheduled to start on 28 October.
He added that the second phase of the feed-in tariff projects will be limited to 136 alliances and companies, which were approved in September 2014, as they meet all the technical and financial conditions. However, the door is still open for all non-eligible companies to participate in alliances.
El-Sobky noted that the non-eligible companies can participate, through a regulatory process, with companies that have been placed on hold and did not obtain lands.
He added that the NREA has many available lands for establishing new projects according to the feed-in tariff system, as part of the state’s plan to produce 2,000 MW from solar energy and 2,000 MW of wind energy.
The investor, who contracted to implement the second phase of the feed-in tariff projects, would be required to achieve the financial closure of the project within one year maximum for solar energy projects, and one year and half for the wind energy projects, starting from 28 October. The investor would also present a letter of commitment from the financing institutions within six months maximum for solar energy projects and one year maximum for wind energy projects, starting from the specified date.