Frienergy al­lo­cates $200m in­vest­ments in en­ergy projects

NE­GO­TI­A­TIONS WITH BANK­ING IN­STI­TU­TIONS TO LEND $180M, SHARE IN FUND­ING PROJECTS: CHAIR­PER­SON OF FRIENERGY

The Daily News Egypt - - News - By Mo­hamed Farag

A gov­ern­ment-owned Chi­nese com­pany, in al­liance with Frienergy, al­lo­cate $200m as an in­vest­ment min­i­mum in new and re­new­able en­ergy projects in Egypt this year.

Marco Frigido, chair­per­son of Frienergy, in­formed Daily News Egypt that his com­pany is con­tribut­ing by pre­par­ing en­gi­neer­ing stud­ies to es­tab­lish elec­tric­ity plants, con­struc­tion works, as well as fund­ing and par­tic­i­pat­ing in the projects’ cap­i­tal, with the con­di­tion that the com­pany’s share would not be less than 51%.

He added that Frienergy is plan­ning on im­ple­ment­ing projects, in co­op­er­a­tion with a gov­ern­men­towned Chi­nese com­pany. It is also cur­rently ne­go­ti­at­ing with in­ter­na­tional fund­ing bod­ies, in­clud­ing the In­ter­na­tional Fi­nance Co­op­er­a­tion, the Euro­pean Bank for Re­con­struc­tion and De­vel­op­ment, as well as Ital­ian banks in or­der to bor­row $180m.

“We have a long-term plan to in­vest in elec­tric­ity projects in Egypt over the up­com­ing pe­riod, and there is no dif­fi­culty in fi­nanc­ing them.The com­pany has good re­la­tions with fund­ing bod­ies,” he added.

Frienergy has im­ple­mented projects in Egypt and Iraq to de­velop busi­nesses, in­clud­ing es­tab­lish­ing an elec­tric­ity line in Basra, which is 672 km long.The com­pany also has the ca­pa­bil­i­ties to work in other mar­kets in the African con­ti­nent, ac­cord­ing to Frigido.

Fur­ther­more, he pointed out that Frienergy has con­tracted with an Egyp­tian com­pany to study the fea­si­bil­ity of im­ple­ment­ing projects in Egypt to work on in­creas­ing the na­tional pro­duc­tion, es­pe­cially since the local in­dus­try is grow­ing. It is im­por­tant, though, to un­der­stand that the cost of es­tab­lish­ing so­cial en­ergy projects in Egypt and the Mid­dle East does not match the rev­enues, as the cost of so­lar en­ergy typ­i­cally ranges be­tween €50 to €60 per hour else­where, as for the Mid­dle East, it costs about €8 per hour.

More­over, Frigido pointed out that the com­pany plans to in­vest in the field of en­ergy from waste gen­er­a­tion, in co­op­er­a­tion with a for­eign com­pany. It is await­ing the law which would reg­u­late gen­er­at­ing en­ergy from waste to pro­duce en­ergy, and de­ter­mine the tar­iff of sell­ing each kW pro­duced from the projects.

Ad­di­tion­ally, he ex­plained that the ob­sta­cles fac­ing the projects in­clude the high cost of fund­ing in the local cur­rency.

The Egyp­tian state has many con­trac­tual sys­tems to es­tab­lish projects for en­ergy pro­duc­tion from so­lar en­ergy, in­clud­ing the feed-in tar­iff, the in­de­pen­dent prod­uct, and net mea­sure­ments.

The cost of so­lar en­ergy typ­i­cally ranges be­tween €50 to €60 per hour else­where, as for the Mid­dle East, it costs about €8 per hour

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