Saudi Arabia’s ACWA Power and UAE’s Alcazar have held talks to acquire wind power plants in Jabal al-Zeit and Zaafarana, Egypt.
The efforts of the two Gulf companies are among 7 local and foreign companies interested in the deal, which also includes the Egyptian “Infinity”, as revealed by two informed persons.
This comes less than 48 hours after the Egyptian Council of Ministers announced the formation of a committee to negotiate with investors who expressed interest in the two wind energy projects in Jabal Al-Zeit and Zaafarana.
The Zaafarana wind power plant has a capacity of 545 megawatts, and the project has been implemented in several phases since 2001, through governmental cooperation protocols with Germany, Denmark, Spain and Japan.
The capacity of the Jabal Al-Zayt wind energy projects is 580 megawatts, and they include the “Jabal Al-Zayt 1” stations with a capacity of 240 MW, “Jabal Al-Zayt 2” with a capacity of 220 MW, and “Jabal Al-Zayt 3” with a capacity of 120 MW, and they have been implemented in cooperation with the Spanish government.
Negotiations with potential investors in the two projects are part of the Egyptian government’s plan to exit dozens of companies, projects and lands in which it owns majority or minority stakes, while allowing more room for the private sector in the economy.
He added, “Long-term feasibility studies are in place, and the strategic investor will only replace the turbines,” expecting the sale to be completed before the end of 2023.
Egypt is facing a foreign currency shortage crisis, the worst in years, in light of the recent increasing pressure on the pound, as the country is actively seeking to attract foreign direct investment and foreign inflows to the local debt market.