The main challenge facing the Orascom Telecom Company, Media and Technology’s solar energy project is the coordination between the ministries of Finance and Electricity and the Central Bank of Egypt (CBE), the company’s deputy executive director Tamer El-Mahdy told the Daily News Egypt Sunday.
Orascom is currently awaiting the Power Purchase Agreement (PPA) to proceed with the feed-in tariff electricity project, El-Mahdy added.
The company was among the first companies to announce feed-in tariff projects, and the land was provided during the Economic Summit that was held in Sharm El-Sheikh in March.
The agreement was signed between the company and the Ministry of Electricity to establish a solar energy plant. The CBE’s involvement comes in the form of guaranteeing the supply of dollars to pay back the loans coming from foreign financial institutions.
El-Mahdy clarified: “The revenues of the project come in Egyptian Pounds, but we would need Dollars to pay back our loans.”
“The IFC, World Bank and the European Bank for Reconstruction and Development (EBRD) will not fund the project unless we have this guarantee,” El-Mahdy said.