On June 28, 2019, MIGA signed a contract issuing guarantees of US$122,000,000 to Lekela Egypt Holdings B.V. for its investment in the 250 MW Lekela Egypt Wind Power Build Own Operate (BOO) Project. The guarantees are issued for up to 20 years against the risks of Transfer Restriction and Inconvertibility, Expropriation, War and Civil Disturbance, and Breach of Contract.
The project is part of Egypt’s BOO program. It consists of the design, development, construction, operation and maintenance of a greenfield wind independent power producer facility with an installed capacity of 252 MW located in the Gulf of Suez area, in Gebel El Zeit approximately 30km north-west of Ras Ghareb on the Red Sea, in Egypt.
The project is a category A under MIGA’s Policy on Environmental and Social Sustainability. This is a joint project with the International Finance Corporation (IFC); in accordance with MIGA’s Access to Information Policy, the MIGA disclosure is linked to IFC disclosure. Click here to view the Environmental and Social Review Summary prepared by IFC for their proposed support to the project, thereafter updated by IFC on May 23, 2019.
The Project’s development impact includes improved energy generation capacity, efficiency and diversification, enabling improved service delivery to Egypt’s population. It has the potential to support Egypt's power system reliability by adding approximately 1120 GWh of generation capacity per annum, while diversifying the country's fuel mix and mitigating Green House Gas emissions by displacing over 500,000 tons of carbon dioxide per annum in support of Egypt's Paris Agreement commitments. Power generated will support the stability of Egypt’s energy system, enabling dispatch from the lowest cost units, permitting fleet efficiency improvement projects, and facilitating regional energy trade. Finally, the Project will source equipment and employees locally, supporting Egypt’s aspiration to become a regional hub for manufacturing and training in the renewable energy sector.