Egypt - The Sovereign Fund of Egypt (TSFE) has reached a preliminary agreement with Actis, a British direct investment company, to sell the Gabal El-Zeit wind farm for $350m, sources close to the deal told Daily News Egypt.

The deal is expected to be finalized in early November, after Actis completed the due diligence process and obtained the approval of the New and Renewable Energy Authority.

The sources said that the agreed value of the deal was higher than the initial offer of $300m that Actis made in April, when the station was put up for sale by the sovereign fund. The station has a capacity of 580 megawatts and is located in the Red Sea governorate.

Hala El-Said, Minister of Planning and Economic Development, confirmed the existence of an initial agreement to sell the wind station in an interview with Bloomberg TV on Tuesday. She said that Egypt had received five offers for the station, but did not disclose the identity of the other bidders or any other details.

According to the proposal document issued by the Information, Support, and Decision-Making Center of the Cabinet, the sale of the station is based on an energy tariff price of 2.4 US cents per kilowatt hour, with 25% of it paid in Egyptian pounds. The buyer will also have the right to use the land for 25 years.

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