Egypt to use $420 mln Gabal El-Zeit wind farm deal proceeds to reduce debt: PM

Egypt will use proceeds of about $420 million from a deal involving the Gabal El-Zeit wind power station to help reduce public debt, Prime Minister Moustafa Madbouly said on Wednesday.

Madbouly said the investment, operation, and power purchase agreements signed with Alcazar Energy for the 580-megawatt Gabal El-Zeit wind farm in the Red Sea are part of Egypt’s strategy to maximise returns from state-owned assets and expand private-sector participation in the economy.

“The proceeds of the deal amount to approximately $420 million and will be transferred to the Ministry of Finance to contribute to reducing debt,” Madbouly said at a Cabinet meeting.

The transaction forms part of Egypt’s State Ownership Policy, under which the government has sought to attract private investment into state-owned assets while improving asset management and generating additional fiscal resources.

Madbouly said the deal supports Egypt’s national energy strategy, which aims to reduce reliance on fossil fuels and increase the share of renewable energy in the country’s electricity mix.

He added that the transaction would generate benefits beyond the upfront proceeds. Additional revenues will come from land-use fees paid by the investor, while the agreement also includes commitments to upgrade the facility and improve its operational efficiency.

Egypt has stepped up efforts to attract private investment into infrastructure and renewable energy projects as it seeks to reduce debt, support fiscal consolidation, and expand clean-energy capacity.

Attribution: Amwal Al Ghad English