Rivalry between Saudi Arabia and UAE over the execution of a significant agreement in Egypt

Saudi Arabia’s ACWA Power and UAE’s Alcazar have negotiated the acquisition of wind farms in Jebel El Zeit and Zaafarana, Egypt.

The efforts of the two Gulf companies are among 7 local and foreign companies interested in the deal, which also includes Egypt’s Infiniti, two people with the knowledge said.

This comes less than 48 hours after the Egyptian Council of Ministers announced the formation of a committee to negotiate with investors showing interest in two wind projects at Jabal al-Zeit and Zaafaran.

The Zaafarana wind farm has a capacity of 545 megawatts, and since 2001 the project has been implemented in several stages under the cooperation protocols of the governments of Germany, Denmark, Spain and Japan.

The Jabal Al-Zayt wind projects have a capacity of 580 megawatts and include the 240 MW Jabal Al-Zayt 1, 220 MW Jabal Al-Zayt 2 and 120 MW Jabal Al-Zayt 3, and they were implemented in cooperation with the Spanish government.

Negotiations with potential investors for the two projects are part of the Egyptian government’s plan to exit dozens of companies, projects and lands in which it owns a controlling or minority stake, while leaving more room for the private sector in the economy.

He added: “There are long-term feasibility studies and the strategic investor will only replace the turbines,” expecting the sale to be completed before the end of 2023.

Egypt is facing a foreign exchange crisis, the worst in years, in light of the recent mounting pressure on the pound as the country actively seeks to attract foreign direct investment and foreign inflows into the local debt market.

Source: agencies

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