WIND FARM GULF OF SUEZ

Promoter – Financial Intermediary

NEW & RENEWABLE ENERGY AUTHORITY

Location

• Egypt

Description

Construction of a 200 MWe windfarm on the Red Sea coast - at the Gulf of Suez - to supply the national grid

Objectives

This renewable energy project is expected to make a significant contribution to both EU and country priorities, in particular with regard to climate action objectives. The project is fully in line with the strategic objectives set for the Bank's external mandate for the Southern Neighbourhood region since it will contribute to reducing the growing electricity supply gap in Egypt using sustainable wind energy resources. The project also directly supports the objectives of the Government of Egypt, which aims to reach a wind energy share of total energy generation of 12% by 2020 under its power sector development strategy.

Comments

This operation is covered by the EU Guarantee for EIB loans outside the EU.

Sector(s)

• Energy

Proposed EIB finance (Approximate amount)

EUR 115 million

Total cost (Approximate amount)

EUR 334 million

Environmental aspects

If the project were located within the EU it would fall under Annex II of the Environmental Impact Assessment (EIA) Directive (2011/92/EU), requiring the competent authorities to determine whether an EIA is required. A Strategic Environmental Assessment (SEA) was conducted for the larger region in 2011 ("1000 MW wind farm") covering an area of about 200 km². Based on the SEA, the competent authority has screened the project in and decided that a preliminary impact assessment or "Form B" is required. As the "Form B" is less comprehensive than a full EIA, the Bank will conduct a gap-analysis with respect to its environmental and social standards and decide on complementary measures as required.

Procurement

The Bank will require the promoter to ensure that the implementation of the project will be done in accordance with the Bank's Guide to Procurement.

Status

Signed - 28/03/2017