Lekela EG Wind 1 (IFC-40137)

Countries
  • Egypt
Where the impacts of the investment may be experienced.
Specific Location
Gulf of Suez area
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jan 10, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Lekela Egypt Wind Power BOO S.A.E.
The holder of the loan, grant, or other investment.
Sectors
  • Energy
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 25.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 325.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Feb 13, 2019

Disclosed by Bank Oct 22, 2018


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Project Description

The project consists of the construction, operation and maintenance of a 250 MW wind farm in Egypt's Gulf of Suez area. The Project will be an Independent Power Producer, generating an average of 1120 GWh annually for sale to the Egyptian Electricity Transmission Company (EETC) under a 20-year Power Purchase Agreement. Turbine supplier Senvion will be the Engineering, Procurement and Construction and the equipment Operations and Maintenance contractor. Construction is expected to begin in March 2019 and operations two years later.

The Project is located in the Gulf of Suez area of Egypt approximately 30km North-West of Ras Ghareb on the Red Sea. The site is largely uncultivated and uninhabited. Land is owned by the New and Renewable Energy Authority who will sign with the Project Company an Usufruct Agreement.  

Investment Description
  • International Finance Corporation (IFC)

The total Project cost is estimated at US$ 325 million, of which IFC's investment is expected to consist of an A loan of c. US$ 25 million and the mobilization provided under IFC’s Managed Co-Lending Portfolio Program of c. US$ 57 million. EBRD and OPIC are expected to provide the remainder of the debt financing required.  

Private Actors

The Project will be developed by Lekela Egypt Wind Power BOO S.A.E., a special purpose vehicle incorporated in Egypt and owned by Lekela Power B.V. which in turn is owned by Actis Sky B.V. (60%) and Mainstream Renewable Power Africa Holdings (40%).

Lekela Power B.V was established in 2015 by its shareholders as a pan-African renewable energy generation platform focused on the development, construction and operation of economically sustainable renewable energy businesses in Africa. Lekela’s portfolio currently includes around 1.3 GW of projects in various stages of development in South Africa, Senegal, Egypt and Ghana.

Lekela is majority-owned by shareholders, 60% owned by Actis, a leading growth markets energy investor and 40% by a consortium led by Mainstream Renewable Power which includes investors such as the IFC and the Rockefeller Brothers Fund.

Contact Information

Lekela Advisors Ltd 
Chad Canfield 
Project Finance 
+44 (0)203 146 3522 
Chad.Canfield@lekela.com 
36 Harbour Exchange Square, London, E14 9GE, United Kingdom 
www.lekela.com  

Local Access for Project Information

Contact Person: Chad Canfield
Company: Lekela Advisors Ltd.
Address: 36 Harbour Exchange Square, London, E14 9GE, United Kingdom
Email: Chad.Canfield@lekela.com
Phone: +44 (0)2031463522

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/