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Bank is looking to provide senior debt financing on a project finance basis for scheme in Gulf of Suez
The European Bank of Reconstruction and Development (EBRD) is considering lending up to $200m for a 1100MW wind project in Egypt.
EBRD is looking to lend senior debt financing on a project finance basis of up to $200m in favour of Suez Wind Energy SAE, a special purpose vehicle incorporated in Egypt for the purpose of constructing and operating the wind farm in the Gulf of Suez region.
The scheme requires a total investment of $1bn.
Suez Wind Energy will be established and owned by a consortium of sponsors that includes ACWA Power (ACWA) and Hassan Allam Utilities (HAU) Energy.
ACWA Power is an experienced international developer of power generation, desalinated water and green hydrogen production projects.
HAU Energy is a newly established renewables equity platform that will be ultimately owned by Meridiam (45%), HAU (30%) and EBRD (25%).
The project involves the development of the wind farm on two plots of land in the Gulf of Suez (GoS).
The GoS is located on a globally important bird migration flyway at the Rift Valley in the Red Sea, where concentrations of 13 migratory avian species pass through the area during the spring and autumn each year and this may present a significant collision risk to birdlife.
This danger is compounded through existing as well as planned wind farms in the wider area as well as associated overhead transmission lines.
The southern plot is located within the Gebel El Zeit Important Bird Area (IBA) which has also been designated as Critical Habitat (CH) as per EBRDs E&S Policy.
The IBA is an important corridor for migrating birds.
The ESP sets out strict requirements for the development of projects in CH, including the need for net gain of those biodiversity features that trigger CH designation, in this case various species of migrating birds.
The northern plot is located outside of the IBA and is not CH, nevertheless bird migration over the plot is significant and the project will need to ensure no net loss of biodiversity.
Environmental and social impact assessments have been conducted for both plots in line with EBRDs ESP requirements and consider all relevant impacts and risks, with an emphasis on migrating birds.
Two years of bird surveys have informed an assessment of impacts to birds supported by collision risk modelling and consideration of implementation of a regional Active Turbine Management Programme, which involves radar assisted turbine shut down on demand and which applies to all wind power projects in the GoS and will apply to the project. |
