Investors in the feed-in tariff (FiT) program have mixed feelings about the new terms set out under phase two, according to company executives speaking to Al Borsa. Some, including the head of project development at Desert Technologies Mohamed El Dal’y, feel that the new rate is so low that margins may make their projects unbankable. Solar Shams’ head of operations believes that the old rates made sense when factoring in FX losses and had hoped that more incentives would be on offer. He also feels lenders would be turned off by the new domestic component requirement of 30%. The regional director of ACWA Power, however, believes that the new terms are encouraging.

This comes as the Electricity Ministry was supposed to meet with international finance institutions yesterday to discuss financing for phase two projects, said New and Renewable Energy Authority chief Mohamed El Sobky. The International Finance Corporation, the European Bank for Reconstruction and Development and the European Investment Bank were among the lenders were supposed to attend. Their objections to the government’s insistence that arbitration of any disputes under phase one would be settled in Cairo was a key aspect of the failure of phase one.

And speaking of the EBRD: the bank had apparently reached an agreement with the International Cooperation Ministry over the lender’s strategy in Egypt, which will focus on private sector and SME development, energy and renewable energy projects and programs that aim to strengthen governance in Egypt. The IFC will continue to focus its resources on infrastructure development and energy, said Mouayed Makhlouf, IFC Director for MENA, according to Al Borsa. Nasr denied “rumors” that the IFC was pulling funding from Egypt, a claim first made by Al Mal and on which we set the record straight yesterday.