Metropolitan Egypt for Consulting has contracted with Infinity Energy Systems to collect financing worth EGP 10m to establish a solar energy plant in Aswan, according to Khaled Nagaty, chairperson of Metropolitan.
Nagaty explained that the contracting is part of the company’s keenness to support projects that serve the national economy and help revive it, noting that Egypt has a large quantity of solar power to be utilised, especially in Aswan.
Infinity has recently completed the establishment of a new company to build a 50MW solar power plant with a capital of EGP 16m.
According to Nagaty, the collection of financing needed for clients was discussed and agreed on with Infinity, making Metropolitan Egypt the financing consultant for similar companies. Solving financing troubles is one of the main problems these companies are facing.
According to Yasser Kamal, credit supervisor at Metropolitan Egypt, the company aims to finance Infinity from foreign investment funds specialised in financing solar and renewable energy projects.
Kamal attributed this to the Egyptian banks’ refusal to finance these projects for long periods, noting that the feasibility study of the project targets a period of 12 to 15 years until profits are achieved. This is why it was important to use foreign investment funds that provide clients with long periods of funding and an interest rate of no more than 5%, and a grace period of no less than 18 months, according to Kamal.
He added that his company has already contacted three funds and is waiting to receive the best offers in order to conclude contracting and start the collection of funding.
According to Amr Fouad, deputy chairperson of Metropolitan Egypt for the legal and security sector, the company’s role will not be limited to being a finance consultant, but it will also negotiate with electricity companies to remove obstacles and support the logistics and licensing to face Infinity.