World Bank Group members International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) signed a deal to help develop a 252MW wind farm in Egypt’s Red Sea governorate.
IFC revealed in a statement that it will provide $84 million in financing while MIGA will offer $122 million in financial guarantees. The funds will help Egypt increase its clean energy production capacity, lower costs, and diversify the country’s energy mix.
IFC will also provide a loan up to $26 million while another $58 million will be used from IFC’s innovative syndications platform, the Managed Co-Lending Portfolio Program. Both World Bank members will also provide environmental and social guidance to help protect a migratory bird flyway.
Walid Labadi, IFC country manager in Egypt, Libya, and Yemen told the media that, “The wind farm will help lower the average cost of electricity generation in Egypt and boost private sector participation in this key sector, while sending a strong signal to the market about our commitment to the country’s renewable energy program.”
The West Bakr wind farm located in the Gulf of Suez is expected to produce over 1,000 gigawatt-hours per year which will power more than 350,000 Egyptian homes. The project will also help cut carbon emission by more than 550,000 tonnes annually.
The wind farm is a part of the Egyptian government’s plan to generate 20 percent of its energy demands through renewable energy sources by 2022.
Egypt is also currently building the world’s largest solar power plant. The Benban Solar Park will produce enough electricity to power one million homes in Egypt.