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Wednesday, 29 June 2016

EETC demands third installment payment of cost sharing agreement with solar investors

The Egyptian Electricity Transmission Company has demanded that solar power outfits in Aswan licensed under the feed-in tariff system pay the third installment of a cost-sharing agreement by 1 July, amounting to EGP 10 mn per firm, Al Borsa reported on Tuesday. The announcement comes after several international institutions pulled back from financing the renewable energy projects after failing to reach an agreement on arbitration with the Electricity Ministry. In the event that the payment is not made, the government will liquidate bank letters of guarantee, Cairo Solar CEO Hisham Tawfik said, adding that the withdrawal of funding will lead to the shutdown of projects. Moreover, CIB has formed a committee to figure out a way to finance the projects after the dispute, but it will likely back out from the first phase of the projects, said Tarek Ammar, a private sector specialist at the African Development Bank in Egypt.

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