Arab Republic of Egypt / Insurance for Gulf of Suez Onshore Wind IPP Project

Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Kazuhiko Bando) has provided insurance to support Japanese investment in an onshore wind IPP project in the Arab Republic of Egypt as well as insurance to support a guarantee on subordinated loans. The investment is made by Toyota Tsusho Corporation (“Toyota Tsusho”) and Eurus Energy Holdings Corporation (“Eurus Energy”) and the guarantee is offered by their parent company. For this project, NEXI also decided to provide insurance to support commercial bank loans last December.¹

Toyota Tsusho and Eurus Energy will establish an Egyptian entity Ras Ghareb Wind Energy SAE (“Ras Ghareb”)² together with Engie SA of France and Orascom Construction SAE of Egypt to operate an onshore wind power business through Ras Ghareb. Ras Ghareb will build, own and operate the onshore wind power plant (125 units, 262.5MW) in Ras Ghareb municipality, Red Sea Governorate on the Gulf of Suez, 260 km southeast of Cairo, with a 20-year power purchase agreement with the Egyptian Electricity Transmission Company.

Currently, both Toyota Tsusho and Eurus Energy are developing and expanding their respective power generation business around the world, including renewable energy such as wind power. As Africa is especially regarded as a priority region with high growth potential, they are anticipating further business expansion in overseas markets through participation in this project.

With a growing population and economy in recent years, expansion of power generation facilities is increasingly vital for Egypt. Also, the country focuses on power sources diversification including renewable energies instead of heavy oil and gas that have been the major power sources. Under such circumstances, this project is expected to play an important role in Egypt.

NEXI will continue to support Japanese companies’ business in the Middle East and Africa.

Contact: Overseas Investment Insurance Underwriting Group, Underwriting Department
　　　　 Tel: 03-3512-7668

¹ For details, please see Topics (News Release), Dec 4, 2017.

² Ras Ghareb is held by Toyota Tsusho/Eurus Energy (40%), Engie SA (France, 40%), and Orascom Construction SAE (Egypt, 20%).