The Egyptian Electricity Holding Company (EEHC) has invited the pre-qualified developers under the first round of the Egyptian Feed-In Tariff programme to expressly indicate their position with respect to the programme. The developers are urged to inform EEHC of whether they will:
- Reach financial closure under the terms of the first round of the programme, with arbitration in Egypt and the financing to be procured 85% and 70% from foreign sources for solar and wind projects respectively;
- Move to the second round of the programme, subject to the new tariffs indicated in EEHC communication of 08 September 2016, and with arbitration seated outside Egypt and 70% and 60% of the financing to be procured from foreign sources for solar and wind projects respectively; or
- Completely pull out of the programme, in which case they would be fully reimbursed all amounts paid under the Cost Sharing Agreement (CSA) without deducting the Termination Fees (with no reference to the payments made under the Memorandum of Understanding for land access, which is understandably a matter to be addressed by the New and Renewable Energy Authority (NREA)).
The developers’ position must be communicated to EEHC by 07 October 2016. The developers would be well advised to also address this communication to the Egyptian Electricity Transmission Company (EETC), the New and Renewable Energy Authority (NREA) and the Egyptian Electric Utility and Consumer Protection Regulatory Agency (EgyptERA).