Egypt has signed a memorandum of understanding (MoU) with China's SANY Renewable Energy to establish the country's first wind turbine manufacturing facility and develop a wind power project in the Gulf of Suez.

The signing ceremony took place at the Cabinet headquarters in Egypt's New Administrative Capital in the presence of Prime Minister Mostafa Madbouly and was attended by Minister of Electricity and Renewable Energy Mahmoud Esmat, according to a post by the Ministry.

The MoU was signed by SANY Renewable Energy Chairman Li Qiang, Egyptian Electricity Transmission Company (EETC) Chairperson Mona Rizq and New and Renewable Energy Authority (NREA) Executive Chairman Ehab Ismail.

Under the agreement, SANY will establish a wind turbine manufacturing plant with an annual production capacity of 2 gigawatts (GW). The facility, which will be built to international standards, is expected to be completed within two years of the signing of the final agreements.

The 2GW wind power project, which will be financed in local currency, is expected to be connected to Egypt's national electricity grid within 23 months of the signing of the implementation agreement.