Clifford Chance Assisted Engie-led Consortium in 500MW Egyptian Wind Project
Clifford Chance Assisted Engie-led Consortium in 500MW Egyptian Wind Project
Clifford Chance provided legal advice to the sponsors Engie, Toyota Tsusho & Eurus, and Orascom Construction concerning the RED SEA WIND ENERGY project in Egypt, which boasts a capacity of 500MW.
The project is situated on the Gulf of Suez coastline, approximately 40km North-West of Ras Ghareb in Egypt.
The RED SEA WIND ENERGY initiative is set to become ENGIE's largest onshore wind power plant, as well as one of Africa's largest. The region is highly sought-after by energy developers owing to its exceptional wind resources, and consequently, additional farms are also under construction in the vicinity.
The financing for the RED SEA WIND ENERGY project is being facilitated by a group of banks, including Export Credit Agencies, DFIs, and commercial lenders. The lending institutions involved in the project include Japan Bank for International Cooperation (JBIC), the European Bank for Reconstruction and Development (EBRD), and Nippon Export Investment Insurance (NEXI), which provides a wrap on the $155 million commercial bank tranche, supplied by Norinchukin, SMBC, and Societe Generale. Furthermore, the Green Climate Fund also provided a financing tranche under the EBRD facility.
The Egyptian Electricity Transmission Company (EETC) has signed a 25-year Power Purchase Agreement (PPA) for renewable energy.
The project will support the ongoing renewable energy goals of Egypt, as well as contribute to the economic and social development of the region. The Egyptian government aims to increase the share of electricity generated from renewable sources to 42 per cent by 2035.
The sponsor consortium was advised by a global team from Clifford Chance, which included the Dubai, Amsterdam, Tokyo, and London offices.
The team was led by partner Mohamed Hamra-Krouha and supported by partners Richard Parris and Yusuke Abe, along with counsels Inaamul Laher, Cheuk Yin Cheung, Igor Bichenkov, and Mike Niekoop.
Senior associates Anna Cornelius, Vany Attarian, Jeroen Kolthof, and Phil Sandu, as well as associates Mahmoud Elbanhawi, Gaurav Sharma, and Masaya Obayashi, also provided assistance.
