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Wednesday, 20 February 2019

Actis-backed Lekela wants to build two wind plants in three years at a cost of USD 500 mn

INVESTMENT WATCH- Actis-backed Lekela wants to build two wind plants in three years at a cost of USD 500 mn: Lekela Power is planning to invest USD 500 mn in two wind energy projects with a combined production capacity of 500 MW over the next three years, the company’s Egypt General Manager Faisal Eissa said. One project is a 250 MW, USD 325 mn plant in Ras Ghareb, which will be completed and at full capacity by 2020-end. The facility will be one of the largest single-site wind power projects in North Africa. Lekela has already secured USD 240 mn in financing for the project from the International Finance Corporation (IFC), the EBRD and the US government’s Overseas Private Investment Corporation (OPIC). The company is also bidding in a tender for another 250 MW plant in West Nile Delta under the BOO (build, own, operate) framework, Eissa said.

Background: Background on the Ras Ghareb project is here (pdf). Lekela is 60% owned by emerging markets private equity giant Actis, which has invested and committed c. USD 1 bn to Egypt in sectors including energy, consumer, healthcare and financial services.

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