Suez Wind Energy
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.