The signing comes as part of Egypt’s State Ownership Policy Document, which aims to maximize returns from state-owned assets.
Prime Minister Mostafa Madbouly witnessed the signing ceremony of two agreements covering the investment, operation, and power purchase arrangements for the 580-MW Gabal El Zeit wind power plant in the Red Sea area.
The agreements were signed between the New and Renewable Energy Authority and the Egyptian Electricity Transmission Company on one side, and Alkazar on the other. The ceremony was attended by Minister of Electricity and Renewable Energy Mahmoud Esmat and Minister of Investment and Foreign Trade Hassan El-Khatib.
The signing comes as part of Egypt’s State Ownership Policy Document, which aims to maximize returns from state-owned assets. It also aligns with the country’s national energy strategy, which seeks to reduce dependence on fossil fuels and raise the contribution of renewable energy to 45% of the energy mix over the next two years.
Under the agreement, Alkazar will invest in, operate, and manage the assets of the Gabal El Zeit wind power plant through a project company to be established in accordance with Egyptian laws and regulations. The project’s investment value stands at $420 million, to be financed through external funding sources, in line with Egypt’s efforts to attract more foreign direct investment.
The foreign partner will be responsible for the project’s operation, technical management, and maintenance, while ensuring continued operations in line with the highest standards to maximize the value of the assets.
The agreement also includes replacement, renovation, and efficiency-upgrade works to increase production capacity, while maintaining the project’s installed capacity at a minimum of 580 MW throughout the contract period. The Egyptian Electricity Transmission Company will purchase the power generated by the plant during the contract term.
The agreement represents a model for partnership with the private sector and builds on the success achieved in renewable energy projects. Solar, wind, and battery storage projects under Egypt’s national energy strategy are being implemented by both local and foreign private sector investors, with private investment playing a leading role in the country’s energy transition and in expanding the use of renewable energy.
Minister of Electricity and Renewable Energy Mahmoud Esmat said Egypt’s current approach focuses on maximizing the benefit of available resources, improving the management and utilization of state-owned assets, increasing returns, and enhancing the performance of affiliated companies and authorities.
He added that the Ministry of Electricity and Renewable Energy supports all forms of partnerships that create mutual benefit, noting that the private sector is playing a leading role in implementing renewable energy projects under the national energy strategy. He also stressed that the state is working to create an attractive investment climate, open more opportunities for local and foreign private sector participation, and support investment across various fields, including solar and wind energy projects.
For his part, Minister of Investment and Foreign Trade Hassan El-Khatib said the transaction is in line with the Egyptian government’s efforts to empower the private sector and expand its role in economic activity, in implementation of the State Ownership Policy Document.
He added that the deal supports investor confidence in Egypt’s investment climate and reflects the government’s seriousness in implementing its program to broaden the ownership base of state-owned companies. The program aims to enhance governance standards and improve the financial and operational performance of state assets.
El-Khatib also praised the key role played by The Sovereign Fund of Egypt in managing the transaction from its early stages by creating a competitive framework that ultimately attracted one of the world’s leading renewable energy companies under a balanced contractual structure that protects the state’s rights while supporting serious investors.
