The U.S. Government’s development finance institution, Overseas Private Investment Corporation said Wednesday it approved $87 million in financing to Lekela Egypt Wind Power BOO S.A.E. to support economic growth in Egypt through the development of critical power infrastructure.
In addition, OPIC said it plans to mobilize more than $250 million in additional capital to finance the project.
Speaking about the funds approval, OPIC Acting President and CEO David Bohigian said in a statement, “ Energy security remains a critical barrier to sustainable growth in Egypt. By diversifying the country’s energy sources, decreasing costs to consumers, and enhancing power generation capacity, the project will expand electricity access in Egypt—creating economic opportunities that empower the Egyptian people.”
Electricity blackouts have challenged Egypt, where more than one-third of installed power capacity is over 20 years old with availability and efficiency rates below common global benchmarks. The financing approved today by OPIC’s Board will support the development, construction, and operation of a 250 MW wind power plant near the Gulf of Suez, Egypt.
The plant will address the country’s aging power infrastructure, diversify its energy mix, and reduce electricity costs. By strengthening the country’s energy security and reducing its reliance on more costly resources, the project will support U.S. efforts to foster economic growth in Egypt.