The US Government’s overseas development arm has announced the approval of $87m in financing to help build the 250 MW Lekela Wind Power project in Egypt.
America's Overseas Private Investment Corporation (Opic) approved the deal on 12 June, 2019, adding its support would mobilise more than $250m in additional capital to finance the project, located near the Gulf of Suez.
The plant will “address the country’s aging power infrastructure, diversify its energy mix, and reduce electricity costs”, Opic said in a statement.
It added: “By strengthening the country’s energy security and reducing its reliance on more costly resources, the project will support US efforts to foster economic growth in Egypt.”
Acting president and chief executive officer of Opic, David Bohigian, added: “Energy security remains a critical barrier to sustainable growth in Egypt.
“By diversifying the country’s energy sources, decreasing costs to consumers, and enhancing power generation capacity, the project will expand electricity access in Egypt—creating economic opportunities that empower the Egyptian people.”
Established in 1971, Opic helps US businesses manage the risks associated with foreign direct investment, and advances US foreign policy and national security priorities.
The news comes amid a concerted effort by Egypt to diversify its energy mix.
The 1.8 GW Benban Solar Park, which is being constructed in Egypt’s Aswan province, is expected to boost the Arab country’s use of renewable energy to meet 22% of its domestic energy needs by 2020.