Lekela Reaches Financial Close on First Wind Project in Egypt

  • Construction will begin shortly at Lekela’s first project in Egypt, West Bakr Wind, to deliver 250MW of clean, reliable power at a highly competitive price.
  • The project will take advantage of a world class wind resource and is an important contribution to Egypt’s ambitious Build, Own, Operate (BOO) scheme.
  • Lekela now has over 1,000MW of clean energy in construction and operation.
  • The project will reduce more than 550,000 tonnes of carbon dioxide emissions per year.

8 August, 2019 – Lekela, the renewable power generation company that delivers utility-scale projects across Africa, has successfully reached financial close on its first wind project in Egypt: West Bakr Wind. Construction will shortly begin, delivering 250MW of clean, reliable power at a highly competitive price. Once the project is fully operational in 2021, it will produce over 1,000GWh per year and power more than 350,000 homes.

Chris Antonopoulos, Chief Executive Officer at Lekela said, “This is a major milestone, not just for Lekela and its partners, but also for Egypt and its clean energy strategy. We are proud to play a part in supporting the diversification of Egypt’s generation capacity by delivering best-in-class clean energy projects.

“As our first project in Egypt, we have enjoyed working closely with partners and stakeholders, including the Egyptian Electricity Transmission Company and the New and Renewable Energy Authority, to get to this point. We see great opportunity to invest in wind energy in Egypt, and we look forward to working in the country for years to come.”

Faisal Eissa, General Manager, Egypt, Lekela added: “We are proud to have reached this milestone with our financial partners, International Finance Corporation (IFC); European Bank for Reconstruction and Development (EBRD); and Overseas Private Investment Corporation (OPIC). We can now concentrate on the completion of the project; and will work closely with Siemens Gamesa Renewables Energy, the EPC contractor for the West Bakr project, on the final steps before the project's full operation scheduled in 2021".

As part of Lekela’s strategy to create long-term value for the communities in which it operates, the project has developed a Community Investment Plan focusing on enterprise, education and environment initiatives. Local employment opportunities will be created alongside skills development and training to improve future employment prospects. During peak construction, the project will employ up to 550 people.

West Bakr Wind is on an important bird migration path, so Lekela is working closely with authorities to ensure that wildlife is protected. The company is participating in a “shut down on demand” programme, meaning that when birds are detected the turbines are able to be stopped. Lekela has also signed a protocol with the Egyptian Environmental Affairs Agency and its Migratory Soaring Birds project to contribute towards the funding and implementation of the Migratory Birds Monitoring training programme.

As a long-term owner-operator, Lekela has a growing team in Egypt who will be responsible for taking this project, as well as other future ones in the country, from construction into operation.

Chris Antonopoulos, Chief Executive Officer Lekela, added, “As a long-term investor with a long-term outlook, we are focused on delivering lasting impact. It is not enough to just invest money, which is why we focus on creating generation spanning benefits for local communities. West Bakr Wind is the latest milestone in our plan to achieve this.”

Eng. Sabah Mashaly, Egyptian Electricity Transmission Company Chairman, added, “This project is an important step and an integral part of our ambitious new and renewable energy strategy - to generate 20% of our energy capacity from renewable energy by 2022. This also comes within the framework of the legislation approved by the Egyptian government with all the involved authorities to facilitate the work of all investors in the energy sector.”

Dr. Sherif Elkholy, Partner and Head of MENA for Actis, the controlling shareholder of Lekela, added, “We are proud that Lekela has now reached financial closing on this very important project. Actis continues to be very committed to Egypt, and our strong support for Lekela on this project is a testament for that, and we look forward to additional successes in Egypt.”

Located 30 kilometres north-west of Ras Ghareb, West Bakr Wind is part of the Government’s Build, Own, Operate (BOO) scheme. It will increase Egypt’s wind energy capacity by 18%, as the country strives to meet its target of generating 20% of its electricity from renewable sources by 2022; which includes 67% partnership with the private sector. The project will also reduce more than 550,000 tonnes of carbon dioxide emissions per year.

 

West Bakr Wind joins Lekela’s portfolio of wind projects across Senegal, Ghana and South Africa. In total, over 1,000MW is now in operation or construction.

The Power Purchase Agreement, Network Connection Contract with the Egyptian Electricity Transmission Company (EETC) and Usufruct Agreement were all signed in February 2019, shortly after the project received cabinet approval. Financing has been provided by Overseas Private Investment Corporation (OPIC), the US Government’s development finance institution, the International Finance Corporation (IFC), a member of the World Bank Group and the European Bank for Reconstruction and Development (EBRD). Siemens Gamesa Renewable Energy will install 96 of their SG 2.6-114 turbines through a turnkey EPC contract and will provide long term maintenance services through a 15-year Long Term Services Agreement.