AMEDA unveils modernisation steps for African, ME depositories    US Military Official Discusses Gaza Aid Challenges: Why Airdrops Aren't Enough    US Embassy in Cairo announces Egyptian-American musical fusion tour    ExxonMobil's Nigerian asset sale nears approval    Chubb prepares $350M payout for state of Maryland over bridge collapse    Argentina's GDP to contract by 3.3% in '24, grow 2.7% in '25: OECD    Turkey's GDP growth to decelerate in next 2 years – OECD    $17.7bn drop in banking sector's net foreign assets deficit during March 2024: CBE    EU pledges €7.4bn to back Egypt's green economy initiatives    Egypt, France emphasize ceasefire in Gaza, two-state solution    Norway's Scatec explores 5 new renewable energy projects in Egypt    Microsoft plans to build data centre in Thailand    Japanese Ambassador presents Certificate of Appreciation to renowned Opera singer Reda El-Wakil    Health Minister, Johnson & Johnson explore collaborative opportunities at Qatar Goals 2024    WFP, EU collaborate to empower refugees, host communities in Egypt    Al-Sisi, Emir of Kuwait discuss bilateral ties, Gaza takes centre stage    Sweilam highlights Egypt's water needs, cooperation efforts during Baghdad Conference    AstraZeneca, Ministry of Health launch early detection and treatment campaign against liver cancer    AstraZeneca injects $50m in Egypt over four years    Egypt, AstraZeneca sign liver cancer MoU    Swiss freeze on Russian assets dwindles to $6.36b in '23    Amir Karara reflects on 'Beit Al-Rifai' success, aspires for future collaborations    Climate change risks 70% of global workforce – ILO    Prime Minister Madbouly reviews cooperation with South Sudan    Egypt retains top spot in CFA's MENA Research Challenge    Egyptian public, private sectors off on Apr 25 marking Sinai Liberation    Debt swaps could unlock $100b for climate action    President Al-Sisi embarks on new term with pledge for prosperity, democratic evolution    Amal Al Ghad Magazine congratulates President Sisi on new office term    Egyptian, Japanese Judo communities celebrate new coach at Tokyo's Embassy in Cairo    Uppingham Cairo and Rafa Nadal Academy Unite to Elevate Sports Education in Egypt with the Introduction of the "Rafa Nadal Tennis Program"    Financial literacy becomes extremely important – EGX official    Euro area annual inflation up to 2.9% – Eurostat    BYD، Brazil's Sigma Lithium JV likely    UNESCO celebrates World Arabic Language Day    Motaz Azaiza mural in Manchester tribute to Palestinian journalists    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Arbitration, Finance Ministry guarantee hinder wind plant establishment with Toyota's alliance
The concern about ‘arbitration inside Egypt' is moving from tariff projects to competitive tenders
Mohamed Farag Published in Daily News Egypt on 20 - 07 - 2016

An alliance of Toyota, Orascom, and GD France demanded to solve the predicament concerning the establishment of the Gulf of Suez wind plant. The trouble revolves around an article in the agreement between the companies and the Ministry of Finance, which stipulates the Ministry of Finance's guarantee to pay in case of dispute, and holding arbitration in Egypt.
The plant is expected to run at a capacity of 250MW. A senior official in the alliance revealed to Daily News Egypt that the buying price of the kilowatt produced from the plant was agreed upon with the alliance. Additionally, all technical and legal issues were agreed upon, except for the previously mentioned article.
The concern about holding arbitration inside Egypt moved from the feed-in-tariff projects to the competitive tenders, especially given that the Ministry of Electricity is sticking to international arbitration inside Egypt. However, the financing institutions are categorically rejecting to finance any project because of that article.
Experts in the energy field believe that the position of the Ministry of Electricity on the arbitration, the lack of foreign exchange, and the delay in signing the agreement may make foreign companies withdraw from investing in the energy projects because of the high risks.
The official added that the consortium of GD France, Toyota, and Orascom will provide the required funding from international institutions and Japanese banks. The Ministry of Electricity will buy energy produced from the station for 25 years at a price that was agreed upon in accordance with the offer made in the tender. Furthermore, the ministry will sell the energy produced to the distribution companies.
He further explained that the ministry had agreed with the alliance to buy the produced energy at 4.7 cents per kilowatt. The ministry set this amount as the maximum price for negotiations in any other tender.
The Ministry of Electricity and Renewable Energy had begun negotiations with the alliance after faltering the final agreement with Lekela Power-Actis. Lekela Power-Actis had offered the electricity at the lowest price, but did not complete the procedures and requirements announced by the ministry.

Clic here to read the story from its source.