Back to the complete issue
Thursday, 23 June 2022

Alhokair subsidiary to build USD 450 mn solar plant in Egypt

Alhokair Group subsidiary FAS Energy is planning to invest some USD 450 mn (SAR 1.7 bn) to construct a 500 MW solar plant in Egypt in partnership with the Electricity Ministry and the Egyptian Electricity Transmission Company (EETC), FAS Energy CEO Sabri Asfour told Enterprise. The firm is in final negotiations on the location of the plant, and hopes to sign the final contracts before the end of July, he said.

The company plans to start construction in August, with hopes of completing as much of the project as possible ahead of the COP27 summit in November, Asfour said, adding that the project should be completed by November 2023.

How will the plant be financed? The company has already secured a syndicated loan covering 80% (USD 360 mn) of the project’s costs from a group of Saudi banks, with the remaining 20% (USD 90 mn) set to be self-funded, Asfour said.

FAS Energy also has plans for green hydrogen: The energy player plans to invest in Egypt’s green hydrogen industry, and will be announcing details for a project sometime after the upcoming Eid vacation in July, Asfour added.

FAS Energy has been active in Egypt for a while: The Alhokair subsidiary has a 50 MW solar power plant at the Benban complex, and plans to set up a waste-to-energy facility in 10th of Ramadan City.

A Saudi investment spree: This comes just a day after Saudi companies signed 14 agreements to invest USD 7.7 bn in Egypt during Crown Prince Mohammed bin Salman’s visit. The agreements included a USD 1.5 bn wind farm project — set to be one of the largest onshore wind farms in the world — for which ACWA Power and Hassan Allam Holding signed a 25-year power purchase agreement (PPA).

IN OTHER INVESTMENT NEWS-

Abu Qir Fertilizers is looking to build an industrial complex with investments of USD 1.2 bn, the EGX-listed company said in a statement (pdf). One of the factories will produce 1.2k tons of ammonia per day, the other will produce 1.8k tons of nitric acid a day and the third will produce 2.4k tons of granular ammonium nitrate daily. The company’s board gave its preliminary approval for the establishment of a company to manage the three factories, which will be financed with 70% debt and 30% equity, split between Abu Qir, the Egyptian General Petroleum Corporation, and some other shareholders.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.