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Monday, 4 July 2016

NREA agrees with international, domestic banks to finance EUR 2 bn Siemens wind farm

The New and Renewable Energy Authority (NREA) has reached an agreement with international and domestic banks to finance the EUR 2 bn Siemens wind farm, NREA Chief Mohamed El Sobky told Al Borsa. The CBE has approved the banks involved, and final agreements will be signed next week, he added. The agreement includes a first tranche of EUR 180 mn that will be issued this month, said El Sobky. Siemens has already begun construction on the first phase, which has a capacity of 180 MW out the total 2,000 MW. International banks are set to finance 75% of the project, and the remaining 25% through domestic banks. The first payment is set to come from international banks, representing 15% of the total project cost, a government official told Al Borsa. The report made no mention of clauses requiring domestic arbitration, a dealbreaker in many other renewable energy projects negotiated by the state.

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