Egyptian Electricity Holding Company signs USD3.5bln MOU with Terra Sola Consortium
Sharm El Sheikh, Egypt: The Egyptian Electricity Holding Company (EEHC), a joint stock company owned by the Government of the Arab Republic of Egypt, has signed a Memorandum of Understanding (MOU) with Terra Sola Consortium (Consortium) to assist the Egyptian government in developing the solar energy sector.
The Consortium comprises of Terra Sola Ventures (Terra Sola), a German-owned company headquartered in Bahrain that is an investor and developer of specialized solar power projects in the Middle East and North Africa (MENA) region, and Terra Nex Financial Engineering (Terra Nex), a Swiss wealth management company which specializes in asset management and venture capital activities.
The MOU was signed on the sidelines of the Egypt Economic Development Conference by the Chairman of the Board of Directors of Egyptian Electricity Holding Company Eng. Ahmed Moustafa Emam and Chairman of Terra Sola Mr. David Heimhofer who signed on behalf of the Consortium.
The Terra Sola Consortium plans to invest approximately USD3.5 billion to develop and build an integrated project of up to 2,000MWp solar capacity in various phases on a Build-Own-Operate-Transfer (BOOT) basis in Egypt.
THE TERRA SOLA PROJECT
The MOU confirms the mutually agreed upon roadmap for the development and implementation of a 2,000MWp European-technology driven solar power project that has been specifically designed for Egypt.
The Project includes the following four (4) major components:
- 2,000MWp Solar PV Power Plants Program (PV Power Program):
A multitude of Photovoltaic (PV) Power Plants reaching a capacity of 2,000MWp will be setup across Egypt by the Terra Sola Consortium to supply future demand power across the country
- Advanced European-technology manufacturing units: a) 200MWp Solar PV Module Manufacturing Factory (PV Module Factory) and b) an Inverter Factory
The Terra Sola Consortium will invest in building a 200MWp Module Factory and an Inverter Factory to produce modules and inverters respectively to be used by the Project’s own solar power plants
- Human Capital Development Program (HCD Program):
The Terra Sola Consortium, along with key European education and training organizations, will setup knowledge transfer initiatives through education, qualification and training programs for Egyptian nationals thereby enhancing their technical skills and capabilities in the increasingly significant solar energy industry
- Small and Medium Enterprise Entrepreneurship Fund (SMEs Fund):
The Terra Sola Consortium will extend financial support to the existing Egyptian SME sector. The SMEs Fund will encourage young & ambitious entrepreneurs in Egypt in the fields related to PV technologies.
Referred to as ‘the Project’
BENEFITS OF THE PROJECT TO EGYPT
The Terra Sola Consortium has specifically structured and formulated this Project to assist Egypt in meeting its national energy generation targets from renewables. Given the socio-economic nature of the Project, the Consortium firmly believes that the Project will positively contribute to the economy of Egypt while generating tangible benefits for the people of Egypt.
The implementation of this Project will provide Egypt with the following direct and indirect benefits:
- The development and implementation of 2,000MWp PV Power Program shall contribute approximately USD3.5 billion in Foreign Direct Investment (FDI) and create more than 50,000 jobs
- Building a PV Module Factory and an Inverter Factory would create over 1,500 jobs during the construction period and sustain over 1,000 full-time operational jobs during the lifetime of the Project
- The HCD Program is expected to support over 10,000 students and will substantially contribute to helping transfer European technology and knowhow to the local labor force of Egypt
- The SMEs Fund will assist in the emergence of more than 1,250 small and medium size companies who will assume key roles in building a PV support industry in Egypt
- The two Factories will make ‘German Technology Made in Egypt’ products and establish a platform for enhancing Egypt’s exports
Mr. David Heimhofer, Chairman of Terra Sola, said:
“I would like to extend my deepest gratitude to the entire governmental hierarchy of Egypt, in particular His Excellency the President Abdel Fattah El Sisi. I would like also specifically thank His Excellency Ibrahim Mahlab, Prime Minister of Egypt, and Dr. Mohamed Shaker El-Markabi, Minister of Electricity and Renewable Energy, who have fully supported our Project. This MOU is a solid step forward in the government of Egypt’s efforts to develop the country’s solar energy capabilities and meet its future demand for power.
“We are proud to consider Egypt as a key strategic market for investment and are committed to deploying our solar power expertise and financial resources to help ensure the Project’s successful execution and timely completion. This milestone Project will bring together solid European expertise including Swiss financial strength and German solar technical knowhow.
“For our USD3.5 billion social value investment, success is measured by the amount of qualitative and quantitative change we can bring about to improve the quality of life for the people of Egypt.” concluded Mr. Heimhofer.
For further information about the Project or the Consortium, please contact:
Head of Corporate Communications
Terra Nex Financial Engineering
+41 41 723 23 62
+973 3635 6585