Ras Ghareb Wind Farm

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The project scope consists of the development and operation of a 250-MW wind farm (Ras Ghareb Wind Farm) located in Rhas Gharib, Gulf of Suez, north of the Red Sea. The venture will be developed through a special purpose vehicle - Ras Ghareb Wind Energy. The SPV is owned by a consortium comprising Engie/SUEZ (40%), Toyota/Eurus Energy (40%) and Orascom (20%). Gulf of SUEZ is the first wind farm tendered on a BOO scheme and is part of the Egyptian government’s drive to increase the share of renewables in the energy mix with a target wind generation capacity of 7 GW by 2022. As Independent Power Producer, the plant's energy will be sold under a 20-year Power Purchase Agreement (PPA) to the Egyptian Electricity Transmission Company (EETC). The criteria for selecting a particular developer is the lowest cost per MWh. Egypt’s Ministry of Finance will guarantee offtake payments. The project will be executed on a build-own-operate (BOO) basis. The total investment cost amounts to approximately $400 million. The sponsors closed on $320 million in debt financing and $80 million in equity bridge loans (EBLs). Each sponsor has a two-year EBL for their full equity share: Société Générale is providing Engie’s EBL , Mizuho Toyota’s EBL and Attijariwafa Orascom's EBL. Japan’s NEXI is providing a guarantee covering the commercial lenders: SMBC and Société Générale which are lending $128 million, split equally. Japanese JBIC is providing a further $192 million in a separate tranche. The debt will have a tenor of 18-years door-to-door, allowing two years for construction. Construction will take 24 months. Financial closure occurred on December 14, 2017. https://energyegypt.net/2017/11/01/engie-orascom-toyota-win-contract-to-develop-250-mw-wind-farm-in-ras-gharib/ https://ijglobal.com/data/transaction/20132?name=Gulf%20of%20Suez%20IPP%20Wind%20Farm%20(250MW)&link=%2Farticles%2F131332%2Fengie-orascom-and-toyota-close-on-gulf-of-suez-wind