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Wednesday, 13 April 2016

Abdul Latif Jameel to exit Egyptian renewables market

Abdul Latif Jameel to exit Egyptian renewables market: The renewable energy arm of Saudi-based giant Abdul Latif Jameel has halted all work on some USD 700 mn in investments in Egypt due to government bureaucracy — and has officially informed the Electricity Ministry of its decision, company sources tell Al Borsa. The decision would effectively shut down the development of renewable power facilities expected to have produced 700 MW, including 500 MW in solar capacity to have been installed in Benban, Kom Ombo, and the West Nile, and a 200 MW wind farm in the West Nile. The head of the Egyptian Electricity Transmission Company has confirmed that the company is pulling out. Company sources cite delays in readying projects tendered back in 2013 and foot-dragging in setting up a feed-in tariff framework as the primary reasons for the exit. The FX crunch was also reportedly as a contributing factor.

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