Marubeni teams up with Masdar, Elsewedy to invest USD 900 mn in Egyptian wind parks
INVESTMENT WATCH- Marubeni teams up with Masdar, Elsewedy to invest USD 900 mn in Egyptian wind parks: Japan’s Marubeni Corp. signed an agreement with Abu Dhabi Future Energy Co. (Masdar) and Egypt’s Elsewedy Electric that will see it invest USD 900 mn in wind parks in Egypt, Bloomberg reports. The projects are expected to cost USD 1.2 mn per megawatt and add a total 700 MW in generation capacity to the national grid, according to Elsewedy Electric Vice President Wael Hamdy. “Marubeni is leading the financing part, so we hope to achieve financial closure as soon as possible,” Hamdy said. “Most probably we will leverage on Japanese finance. The lead arrangers and the syndication is something we are working on currently.” One of the projects, representing 30% of total capacity, is nearing financial close, according to Hamdy. We had noted earlier this week that Masdar was eyeing new power projects in Egypt under a plan that should see it invest around USD 1 bn in energy projects in countries including China, India, and Argentina.
Elsewedy Electric CEO Ahmed Elsewedy spoke on opportunities in renewables in an interview with African Business that ran yesterday. “By undertaking solar projects, Elsewedy demonstrates its ability to capitalise on market opportunities by aligning strategy to government vision, for which renewable energy takes increasing precedence,” he said. “Furthermore, as the government aims to overcome a large budget deficit by reducing energy subsidies, Elsewedy can offer its energy saving solutions to companies battling increased operational costs,” he added.
The company’s other growth factor is to use Egypt as a launch pad for key new projects abroad, particularly in Africa, said Elsewedy. “Africa’s electrification [rate] is less than 10%, so there’s a lot of space in the continent, either in the energy sector or the transmission sector. I really believe Africa is one of our main interests, for us as a company in Egypt,” he added.