The European Bank for Reconstruction and Development (EBRD) is set to provide a comprehensive financing package for the development and construction of a 200MW wind farm in Ras Ghareb, Egypt.

The EBRD’s financing package totals $74.1m (E£3.57bn) for the onshore wind farm, which is being constructed under a joint venture between Infinity Power and Masdar.

The package comprises an EBRD senior loan of up to $60.7m, a concessional loan of up to $3.38m from the Green Climate Fund (GCF) and an investment grant of up to $10m.

As a key development partner for Egypt’s Nexus on Water, Food and Energy (NWFE) initiative, the EBRD is also serving as the acting lead institution for the Ras Ghareb project.

The bank is coordinating with other institutions including GCF, the Japan International Cooperation Agency (JICA) and Proparco to ensure the successful completion of the Ras Ghareb wind farm. Construction is expected to commence in the next few weeks.

EBRD Sustainable Infrastructure Group managing director Harry Boyd-Carpenter said: “We are thrilled to deepen our long-standing partnership with our valued clients, Infinity and Masdar. This project stands as a shining example of what can be achieved when visionary companies join forces with committed international partners.

“Our collaboration with JICA and Proparco, with the crucial support of the GCF, underlines the power of global cooperation in not only advancing renewable energy but also building a more sustainable and inclusive future for all. Our gratitude extends to the Government of Egypt for its ongoing support and instrumental role throughout.”

Upon completion, the project will contribute to Egypt’s objective of reaching 10GW of renewable energy capacity by 2028 under the NWFE programme and is expected to cut the nation’s annual carbon emissions by 390,000 tonnes.

The wind farm also aims to foster local skills development and job opportunities by initiating a certified internship programme for young engineers in the region, with a special emphasis on encouraging women’s participation in the energy sector.

Infinity Power co-founder and chairman Mohamed Ismail Mansour said: “We are deeply grateful for the support of our finance partners, namely the EBRD, the Green Climate Fund, JICA and Proparco, which has been instrumental in bringing the Ras Ghareb project to this stage.

“We also acknowledge the invaluable contributions of the Egyptian Electricity Transmission Company and the Ministry of Finance. Strong partnerships of this kind are vital not only to delivering Egypt’s clean energy ambitions but also to accelerating the wider transition towards a more sustainable future across Africa.”

In a related development, Romania recently completed its second renewable energy auction under the contracts for difference (CfD) scheme, also supported by the EBRD.

The CfD scheme promotes investment by offering long-term revenue stability to developers and aiding the integration of renewables into the market.