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KfW Lends $258 Million to Egypt for Africa's Largest Wind Farm
2010-12-14 19:10:21.56 GMT
By Sally Bakewell
Dec. 14 (Bloomberg) -- KfW Group, the German state-owned
development bank, is lending 192 million euros ($258 million) to
Egypt to help fund Africa's largest wind farm.
The Frankfurt-based bank, acting on behalf of the German
Economic Cooperation and Development ministry, announced the
agreement today with Egypt's central bank and its New and
Renewable Energy Authority. Loan terms weren't disclosed.
The NREA, which reports to the Egyptian Electricity and
Energy ministry, is developing the 200-megawatt Gulf of el Zayt
wind farm along the Red Sea coast. The 340 million-euro project
will be 25 kilometers (16 miles) north of the Gabel el Zayt
mountains between Hurghada and Zafarana.
The Egyptian government agreed to contribute 68.5 million
euros to the project, according to the statement. The European
Investment Bank will provide a 50 million-euro loan and the
European Commission approved a 30 million-euro grant.
"The project aims at meeting Egypt's growing power needs
and thus making a substantial contribution to climate
protection," Norbert Kloppenburg, a member of KfW's executive
board, said in the statement.
Egypt has about 530 megawatts of installed wind capacity in
the Zafarana area, according to Bloomberg New Energy Finance.
The wind farm is also an "important building block" for
Desertec, an initiative to develop renewable projects in north
Africa mainly from solar power, Kloppenburg said.
For Related News and Information:
Top renewable energy stories: TOP ENV <GO>
Most-read wind news: MNI WIND <GO>
Stories about wind power in Africa TNI WIND AFRICA <GO>
--Editors: Will Wade, Randall Hackley
To contact the reporter responsible for this story:
Sally Bakewell in London at +44-20-3216-4332 or
Sbakewell1@bloomberg.net
To contact the editor responsible for this story:
Reed Landberg at +44-20-7330-7862 or
landberg@bloomberg.net
