WASHINGTON, June 15, 2010 – The World Bank’s Board of ExecutiveDirectors today approved a loan in the amount of $ 220 million for Egypt tosupport Wind Power Development Project, out of which $150 million is financedfrom the Clean Technology Fund (CTF). This is the first CTF supported projectin the Middle East and North Africa region.
The project will supportthe renewable energy strategy of Egypt, which has given the utmost priority tothe large scale renewable energy electricity generation program which can serveboth national and regional goals of achieving fossil fuel savings, protectionof the environment, and the creation of green jobs and technologytransfer.
Some of the world’s bestwind power resources are in Egypt, especially in the areas of the Gulf of Suez,where at least 7,200 MW could be potentially developed by 2022, with further3,000 MW on the west and east banks of the Nile. Under its large scaledevelopment of renewable resources strategy, Egypt plans to have 20% of itsinstalled generation capacity in the form of renewables by 2020.
“We are pleased tosupport the renewable energy strategy of Egypt and the scaling up developmentof the wind and solar power plants,” said A. David Craig, Country Director for Egypt, Yemenand Djibouti.
The project’sdevelopment objective is to develop infrastructure and business models forscaling-up wind power in Egypt. It comprises transmission infrastructuredevelopment and support for the construction of the first 250 MW wind projectin the Gulf of Suez and Gabel El-Zait. The project will connect the future windparks at Gulf of Suez and Gabel El-Zait to the national network.
“One of the outcomesof this project is to reduce GHG emissions through facilitating the developmentof clean energy resources (wind power) which will result in displacing thermal(fossil fuel-based) generation,” said ChandrasekarGovindarajalu, the World Bank’s Task Team leader. “Furthermore, the project has severalelements that make a strong case for replicability. The Egyptian experience,being the most extensive in the region, will be applicable for many of theother MENA countries,” he added.
It is also worth notingthat on June 8, the World Bank’s Board of Executive Directors approved a loanin the amount of $ 600 million for Egypt to support Giza North Power Project.The project supports the Government of Egypt’s power sector investment plan tomeet the growing electricity demand in the country and ensure access toreliable supply of power – all are prerequisites for sustained economic growthand achieving the country’s social development agenda.