Lekela Power for New and Renewable Energy plans to sign a contract with Egypt to establish a wind farm in Egypt the second quarter of this year. The full cost of this farm is appraised at $350m.
Actis Egypt’s director, Sherif Elkholy, confirmed that the firm handed in all the necessary paperwork to the Ministry of Electricity and is now in talks with the government to sign the last contract.
Lekela Power had signed a memorandum of understanding with the Ministry of Electricity two years ago to put up a wind farm. Actis, a developing markets investor, owns 60% of Lekela Power. The remaining 40% are owned by the solar and wind energy developer Mainstream.
Mr.Elkholy said that Lekela Power is set to put up a wind farm in the Gulf of Suez area with a capacity of 250MW. He added that the project will be financed by Actis and a number of local and foreign banks.
Actis has three direct investment funds in Afric namely Actis Energy 3 Actis 4 and Actis Africa 4.
In a different context, Elkholy said that investment main concern in 2017 in Egypt is in the healthcare sector, which he said to be very favorable for foreign investors.
He also stated that Actis concentrated its investments on the healthcare sector, along with food and fiscal services in Egypt, where the company is finalizing numerous deals and will announce fiscal closure for them this year.
Elkholy pointed out that, similar to other investors, the company adjourned most of its investments as it was cautious of the unsteadiness of the exchange rate over the past two years. Yet, after the decision to float the pound in November 2016, the company has reassessed its investments.
He added that the company does not plan to invest in minor and intermediate enterprises, as its least investment amount is $60m.