Dutch development bank FMO plans to provide up to $60 million in long-term financing for a 900-megawatt wind power project in Egypt, backing one of the country’s largest renewable energy developments as Cairo seeks to expand clean energy capacity and diversify its electricity mix.
The financing will support the development and construction of the Gulf of Suez III onshore wind project in West Gabal El Zayt, a key wind corridor along Egypt’s Red Sea coast, according to project disclosures.
The project company, Shokeir Wind Energy S.A.E., is backed by a consortium comprising Japan’s Toyota Tsusho Corp unit Aeolus, which holds a 40% stake, France-based utility ENGIE with 35%, and Egypt’s Orascom Construction with 25%.
FMO said the loan would be extended under a “Friendship Facility” led by French development finance institution Proparco, alongside other development finance institutions and commercial lenders.
Development finance institutions are playing a key role in Egypt’s renewable energy pipeline, as long-tenor project financing of this nature remains limited among local and regional commercial banks.
Egypt has been trying to attract more private capital into renewable energy as part of efforts to reduce dependence on fossil fuels, ease pressure on its power sector and support its climate commitments. The Gulf of Suez has emerged as one of the country’s most important wind development zones because of its strong wind resources.
The project, however, faces heightened environmental scrutiny because of its location in the Gulf of Suez, a globally significant migratory bird corridor.
FMO classified the transaction as Category A under its environmental and social framework, citing potential biodiversity risks, cumulative impacts on migratory soaring birds, labor issues, community health and safety risks, and possible human rights concerns in the wind turbine supply chain.
The lender said its financing decision remains conditional on the outcome of ongoing environmental assessments, including confirmation that the project and related infrastructure are not located in sensitive migratory bird zones identified under regional strategic studies.
FMO said the project is expected to contribute to climate mitigation and align with Sustainable Development Goal 13 on climate action.