Project description
The summary of proposed guarantee covers an application by ACWA Power Company, Meridiam, and other investors yet to be identified (collectively, the Guarantee Holders), for their equity/quasi-equity/shareholder loans investments and associated interests into Suez Wind Energy SAE (the Project Enterprise), which will develop a wind power project in Egypt (the Project). The Guarantee Holders are seeking a combined guarantees of up to US$ 300 million against the risks of Breach of Contract, Transfer Restriction, Expropriation and War and Civil Disturbance for a period of up to 25 years.
The Project involves the design, construction, operation, and maintenance of a 1,100 MW Suez wind farm, that is split between two plots located in Ras Gharib district in the Gulf of Suez. Plot 1 is the northern plot and has a capacity of 550 MW and Plot 2 is the southern plot, with a capacity of 550 MW. The Project will connect to the national grid through an overhead transmission line (“OHTL”), which is the responsibility of the state-owned Egyptian Electricity Transmission Company (EETC). The power generated by the Project will be sold to EETC under a 25-year build-own-operate power purchase agreement.
Environmental Categorization
The Project is Category A under MIGA Policy on Environmental and Social Sustainability (2013). Click here to view The Environmental and Social Review Summary.
The Project’s E&S documents and other relevant documents are also available at the ACWA’s website:
Development Impact
The Project’s key expected benefits are: (i) climate benefits through greenhouse gas emissions avoidance; (ii) advancing Egypt’s progress on renewable energy development in support of the country’s broader development strategy; (iii) support for Egypt's resilience by diversifying its energy sources and supporting energy security; and (iv) mobilizing private investment into the country’s renewable energy sector.
