Ten banking institutions have agreed to finance the second phase of the new and renewable energy projects.

Sources at the Ministry of Electricity said that these banks are ready to finance projects after adjusting the arbitration item. They agreed for the arbitration in case of dispute to be in Paris following an agreement by both parties.

According to the sources, the list includes: the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank, the Export-Import Bank of China, the German Development Bank (KFW), BNP Paribas, HSBC, and the African Development Bank (AFDB).

The Ministry of Electricity sent the terms and conditions for the second phase of the feed-in tariff project to the international financial institutions, in order to begin negotiations with the companies involved in the projects and to finance them.

Controls for the second phase of the feed-in tariff projects include financing wind energy projects with 60% from foreign financing resources and 40% from local resources; while solar energy projects will be financed with 70% from foreign resources and 30% from local financing.

The repayment method for solar energy projects includes 30% of the tariff’s value at a rate of EGP 8.88, the Egyptian pound exchange rate against the US dollar at the time of issuing the tariff. The rest of the tariff’s value, 70%, will be charged at the exchange price as of the repayment date.

Wind power projects will be subject to repayment with 40% of the tariff value being repaid at EGP 8.88, and 60% according to the price of the pound against the dollar as of the repayment date.

According to the second phase of controls, arbitration in case of disputes will be held in Egypt with the possibility of a transfer to Paris upon an agreement by both sides.