Lekela Power for New and Renewable Energy intends to sign an agreement with the government to establish a wind farm in the second quarter of this year. The total cost of this farm is estimated at $350m.
Actis Egypt’s director, Sherif Elkholy, said that the company handed in all the required paperwork to the Ministry of Electricity and is now in talks with the government to sign the final agreement.
Lekela Power had signed a memorandum of understanding with the Ministry of Electricity two years ago to establish a wind farm. Actis, an emerging markets investor, owns 60% of Lekela Power. The remaining 40% are owned by the solar and wind energy developer Mainstream.
Elkholy said that Lekela Power is set to establish a wind farm in the Gulf of Suez area with a capacity of 250MW. He added that the project will be funded by Actis and a number of local and foreign banks.
Actis owns three direct investment funds in Africa: Actis 4, Actis Africa 4, and Actis Energy 3.
In a different context, Elkholy said that investment priority in 2017 in Egypt is in the healthcare sector, which he believed to be very promising for foreign investors.
He noted that Actis focused its investments on the healthcare sector, along with food and financial services in Egypt, where the company is concluding several deals and will announce financial closure for them this year.
Elkholy pointed out that, similar to other investors, the company postponed most of its investments as it was wary of the instability of the exchange rate over the past two years. Yet, after the decision to float the pound in November 2016, the company has reconsidered its investments.
He added that the company does not intend to invest in small and medium enterprises, as its minimum investment amount is $60m.