Japan’s state-run export credit agency Nippon Export and Investment Insurance (NEXI) plans to boost support for infrastructure projects in Egypt, its chairman Kazuhiko Bando said Monday.
Bando made his remarks during his meeting with Egyptian Minister of Investment Sahar Nasr, who is visiting Japan this week.
NEXI has provided insurance to support commercial bank loans for the wind power plant project implemented on the Gulf of Suez, 260 km (161.5 miles) southeast of Cairo, Bando said.
NEXI’s financial support to this project will help Japanese companies to have more business opportunities in Egypt and other African countries, and will also help strengthen and maintain their international competitiveness in the energy development including renewable energy, he said.
This was the first time that NEXI had provided long-term insurance for an Egyptian project since the outbreak of the Arab Spring. This is also the first loan insurance provided by NEXI to support project finance for an independent power producer (IPP) project in Egypt.
Ras Ghareb Wind Energy will build, own, and operate the 262.5 MW wind power plant.
Ras Ghareb will raise $320 million in total in the form of co-finance, of which Japan Bank for International Cooperation will provide $192 million, Sumitomo Mitsui Banking Corporation, and Societe Generale-Tokyo Branch will provide $128 million, NEXI said in a statement earlier this month.
NEXI will provide insurance to support the loans of the two commercial banks.