FAS opened its office in Egypt, appointed engineers, consultant and signed with the international financial institutions agreement for the loans to implement the project, says Sabri Asfour, the General Manager of FAS Energy.
Daily News Egypt discussed with to Asfour his company’s preparation to invest in Egypt’s energy sector.
How does the company evaluate the energy sector in Egypt?
Actually, we always said that, in Egypt, all kind of investments could be success stories. The energy sector is one of the most important sectors in Egypt, in general, and could be one of the most attractive sectors for investors.
FAS Energy is a subsidiary of Fawaz Al-Hokair, who invested in Egypt from 2005, and we expanded our investment into the energy sector because we believe in the success of this field.
FAS Energy signed in Sharm El Sheikh two MoU’s, one under the Feed-In Tariff (FIT) programme and the other to invest in 2000 MW of solar energy. We have already agreed with the banks and with the international Engineering Procurement Construction (EPC).
We increased our investment and are still waiting to implement our MoUs on the ground. Our total investments in energy in Egypt will reach $4bn in the next four years.
How do you see the Egyptian energy mix and what is the potential of inserting renewable energy with it?
The best type of energy is the mix, especially the hybrid one, where you can use solar and wind in the same location.
The New and Renewable Energy Authority (NREA) and the Egyptian Electricity Transmission Company (EETC), have already done a great job by announcing 2300 MW solar energy and 2000 MW wind energy. This was already completed by qualified developers and will bring in leading investors to Egypt like FAS Energy.
In your opinion, what are the advantages and the obstacles to investing in the Egyptian energy sector?
The advantages include the decreasing of the deficit of energy in Egypt, the government’s tendency to go green, the environmental part and energy localisation. In addition, it will bring the foreign investors to Egypt and create jobs.
However, the obstacles are found in the slow procedures, the implementation of policies and convertibility.
What are the details of the MoU signed with the Egyptian government during EEDC to build a 2 GW solar plant? When will be a contract?
We offered to build a 2 GW solar plant in Egypt, with investment of around $4bn, we are ready to start from that time, as we signed with the best EPCs and JVs.
We are ready, but are waiting for the EETC, the Egyptian Electricity Holding Company (EEHC) and the NREA to assign the land. FAS Energy sent to the government a progress report on a weekly basis from the date we signed the MoU to now.
We opened our office in Egypt, appointed engineers, consultants and we signed with the international financial institutions agreements for the loans. We even made a power purchase agreement (PPA) with an international legal office.
Did you have any negotiations with the Egyptian ministry of electricity to develop larger scale projects?
Yes, the negotiations on the next projects depend and are based on the MoU signed in EEDC.
Can you tell us more about the power purchase agreement (PPA)?
Actually, it is in the EETC legal department now and we are waiting for them to call us to sign and start building our station.
What is the company’s plan regarding investing in Egypt?
We are in Egypt and we will stay, as FAS Energy, we have a huge programme for the investment in the Energy sector, Energy audit and creative technology.
Does the company intend to invest in Suez Canal Development Axis projects?
Yes and we will announce our programme soon.