<div><h2>Project Description</h2><p></p><p>Provision of a long-term senior loan of up to USD 140 million (c. EUR 129 million) to finance the acquisition of the Gabal El Zeit windfarm, a 580 MW windfarm located in Gulf of Suez area in Egypt.  The plant will sell power to the Egyptian Electricity Transmission Company (EETC) under the terms of a long term power purchase agreement. </p><p></p><h2>Project Objectives</h2><p></p><p>The project will be one of the first state-owned assets to be privatised under the Egyptian government's wider privatisation program announced in 2023. The project will further promote private sector participation and the liberalisation of Egypt's electricity market.</p><p></p><h2>Transition Impact</h2><p>ETI score: 81</p><p style="margin-top: -13px;"></p><p>The project will target the "Competitive" quality by supporting the full privatisation of a majority state-owned entity, contributing to the gradual liberalization of the sector.  The project will also contribute to the "Resilient" quality by providing foreign currency into the economy and promoting sustainable economic growth.</p><p></p><h2>Client Information</h2><p>TO BE DEFINED</p><p style="margin-top: -13px;"></p><p>A newly established special purpose vehicle incorporated in Egypt for the sole purpose of owning and operating the Gabal El Zeit Wind farm, which is envisaged to be ultimately 100% owned by Actis Long Life Infrastructure Fund.  </p><p></p><h2>Additionality</h2><p></p><p>EBRD's additionality mainly derives from (i) the Bank is offering financing on reasonable terms and conditions that is expected to close the funding gap, (ii) the Bank is offering a tenor, which is longer than available to the client in the market on reasonable terms and conditions, and (iii) EBRD is offering local currency financing on terms not readily available in the market.</p><p></p><h2>Environmental and Social Summary</h2><p></p><p>Categorised B (2019 ESP).  The Project involves the acquisition of an existing 580 MW wind power project (WPP) composed of 290 wind turbines.  The WPP is located in the Gulf of Suez in Egypt, was built in three phases (first operational in 2014) and was the first WPP in this area.  As the WPP is an existing operating facility with no planned expansion, the Project has been categorised as B in line with EBRD's ESP.  The Project is expected to result in improvements to the WPP and how it is operated, and in particular, further reducing impacts to birds.  The Client has experience with the sector and its associated risks having been involved in the West Bakr project, an EBRD WPP located in the GoS.  E&amp;S due diligence (ESDD) for the Project has been undertaken by Consultant and an ESAP will be agreed with the Client to structure the Project in line with EBRD's E&amp;S requirements. </p><p>The WPP is located within the Red Sea/Rift Valley flyway, which is a globally important flyway for migratory soaring birds during spring and autumn, and within the Gebel El Zeit Important Bird Area (IBA), which was designated to protect a strategic location within the flyway.  The IBA is the narrowest part of the southern GoS and is also an important stop off point for birds that cross the Red Sea.  The WPP, like other existing and planned WPPs in the GoS, presents a significant collision risk to various migrating bird species due to its location on a flyway.</p><p>ESDD has shown that the WPP was subject to ESIAs as part of their permitting and funding processes.  These ESIAs included various bird surveys and analysis of impacts, including collision risk.  To mitigate collision risk the WPP adopted a turbine shut on demand approach where a team of bird observers present in the WPP area during spring and autumn issue instructions to temporarily shut down turbines when a risk of collision is observed.  This is based on certain criteria and has served as the basis for an effective system of collision avoidance and reduction which is now applied to all WPPs in the GoS, including those financed by EBRD.  Bird observers are complemented by radar in the spring and Post-Construction Fatality Monitoring (PCFM) is also undertaken to identify bird fatalities.  The ESDD determined that while the system is effective, there have been bird fatalities and various areas for improvement have been identified, which would further reduce fatalities.  These areas for improvement will be a required through the ESAP.</p><p>Subsequent to the development of the WPP, various lenders supported private sector WPPs outside the IBA.  The ESIAs for these WPPs determined that the IBA is critical habitat as per EBRD PR6 (and IFC PS6).  Projects located in critical habitat are required to demonstrate a net gain for the critical habitat impacted by the Project.  In the case of the WPP, impacts on critical habitat features (migrating birds) are an ongoing risk during the operation of the WPP.  In addition to measures to improvement turbine shut down approaches, Project has developed a draft Biodiversity Action Plan which sets out indicative actions necessary to meet the net gain requirement.  This involves actions within the Project area and along the flyway in other countries.  The BAP is being finalised, stakeholders engaged and the actions costed.  Implementation of the BAP will be an ESAP requirement. </p><p>The WPP is currently operated by an O&amp;M contractor which has in place various management systems and procedures.  The ESDD has identified some areas where improvements are required to ensure alignment with EBRD's E&amp;S requirements.  Further actions have identified to ensure full alignment with EBRD's PR2 with respect to project specific HR policies and procedures and PR4 with respect to certain health and safety provisions.  The WPP is distant to inhabited areas and therefore impacts, such as noise, shadow flicker, etc., are limited.  The WPP is located on state land and no land acquisition was required.  The ESDD has identified some improvements necessary for security management and the management of waste, including hazardous waste.  A worker and public grievance mechanism is in place.  Stakeholder engagement was undertaken as part of the ESIA disclosure process but subsequent stakeholder engagement appears to be limited.  A stakeholder engagement plan has been developed as part of the ESD.  All required actions will be included in the ESAP. </p><p></p><h2>PSD last updated</h2><p>09 Apr 2024</p><div id="docsLinks" style=""><h2>Related material</h2><ul class="relMat"><li><a href="https://www.ebrd.com/work-with-us/projects/psd-translation/54928/1395319816773/Gabal_El_Zeit_windfarm_(Arabic).pdf?blobnocache=true" title="Download document">Translation: Gabal El Zeit windfarm (Arabic)</a> <i class="glyphicon glyphicon-download-alt"></i><br/><small>Type: PDF, Published: 18.04.2024, Language: Arabic</small></li></ul></div><script type="text/javascript">						var projFinderService = '/project-finder-json?1=1';						var projectId = "54928";					</script><h2>	Understanding Transition</h2><p>	Further information regarding the EBRD’s approach to measuring transition impact is available <a href="https://www.ebrd.com/what-we-do/economic-research-and-data/transition-impact.html">here</a>.</p><h2>	Business opportunities</h2><p>	For business opportunities or procurement, contact the client company.</p><p>	For business opportunities with EBRD (not related to procurement) contact:</p><p>	Tel: +44 20 7338 7168<br/>	Email: <a href="mailto:projectenquiries@ebrd.com">projectenquiries@ebrd.com</a></p><p>	For state-sector projects, visit <a href="https://www.ebrd.com/pages/workingwithus/procurement.shtml">EBRD Procurement</a>:<br/><br/>	Tel: +44 20 7338 6794<br/>	Email: <a href="mailto:procurement@ebrd.com">procurement@ebrd.com</a></p><h2>	General enquiries</h2><p>	Specific enquiries can be made using the <a href="https://www.ebrd.com/eform/information-request">EBRD Enquiries form</a>.</p><h2>	Environmental and Social Policy (ESP)</h2><p>	The <a href="https://www.ebrd.com/news/publications/policies/environmental-and-social-policy-esp.html">ESP</a> and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.</p><p>	More information on the EBRD’s practices in this regard is set out in the <a href="https://www.ebrd.com/news/publications/policies/environmental-and-social-policy-esp.html">ESP</a>.</p><h2>	Integrity and Compliance</h2><p>	The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.</p><p>	OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to <a href="mailto:compliance@ebrd.com">compliance@ebrd.com</a>. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.</p><h2>	Access to Information Policy (AIP)</h2><p>	The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the <a href="https://www.ebrd.com/what-we-do/strategies-and-policies/public-information-policy.html">Access to Information Policy</a> page to find out what information is available from the EBRD website.</p><p>	Specific requests for information can be made using the <a href="https://www.ebrd.com/eform/information-request">EBRD Enquiries form</a>.</p><h2>	Independent Project Accountability Mechanism (IPAM)</h2><p>	If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).</p><p>	IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its <a href="https://www.ebrd.com/news/publications/policies/environmental-and-social-policy-esp.html">Environmental and Social Policy</a> or Project-specific provisions of its <a href="https://www.ebrd.com/what-we-do/strategies-and-policies/access-to-information-policy.html">Access to Information Policy</a>; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.</p><p>	Please visit the <a href="https://www.ebrd.com/project-finance/independent-project-accountability-mechanism.html">Independent Project Accountability Mechanism webpage</a> to find out more about IPAM and its mandate; how to <a href="https://www.ebrd.com/eform/IPAM/Request_form">submit a Request</a> for review; or contact IPAM  via email <a href="mailto:ipam@ebrd.com">ipam@ebrd.com</a> to get guidance and more information on IPAM and how to submit a request.</p><p>	 </p></div>

Gabal El Zeit windfarm

Provision of a long-term senior loan of up to USD 140 million c. EUR 129 million to finance the acquisition of the Gabal El Zeit windfarm, a 580 MW windfarm located in Gulf of Suez area in Egypt.  The plant will sell power to the Egyptian Electricity Transmission Company EETC under the terms of a long term power purchase agreement. The project will be one of the first state-owned assets to be privatised under the Egyptian government's wider privatisation program announced in 2023. The project will further promote private sector participation and the liberalisation of Egypt's electricity market.ETI score: 81The project will target the Competitive quality by supporting the full privatisation of a majority state-owned entity, contributing to the gradual liberalization of the sector.  The project will also contribute to the Resilient quality by providing foreign currency into the economy and promoting sustainable economic growth.TO BE DEFINEDA newly established special purpose vehicle incorporated in Egypt for the sole purpose of owning and operating the Gabal El Zeit Wind farm, which is envisaged to be ultimately 100 owned by Actis Long Life Infrastructure Fund.  EBRD's additionality mainly derives from i the Bank is offering financing on reasonable terms and conditions that is expected to close the funding gap, ii the Bank is offering a tenor, which is longer than available to the client in the market on reasonable terms and conditions, and iii EBRD is offering local currency financing on terms not readily available in the market.Categorised B 2019 ESP.  The Project involves the acquisition of an existing 580 MW wind power project WPP composed of 290 wind turbines.  The WPP is located in the Gulf of Suez in Egypt, was built in three phases first operational in 2014 and was the first WPP in this area.  As the WPP is an existing operating facility with no planned expansion, the Project has been categorised as B in line with EBRD's ESP.  The Project is expected to result in improvements to the WPP and how it is operated, and in particular, further reducing impacts to birds.  The Client has experience with the sector and its associated risks having been involved in the West Bakr project, an EBRD WPP located in the GoS.  ES due diligence ESDD for the Project has been undertaken by Consultant and an ESAP will be agreed with the Client to structure the Project in line with EBRD's ES requirements. The WPP is located within the Red SeaRift Valley flyway, which is a globally important flyway for migratory soaring birds during spring and autumn, and within the Gebel El Zeit Important Bird Area IBA, which was designated to protect a strategic location within the flyway.  The IBA is the narrowest part of the southern GoS and is also an important stop off point for birds that cross the Red Sea.  The WPP, like other existing and planned WPPs in the GoS, presents a significant collision risk to various migrating bird species due to its location on a flyway.ESDD has shown that the WPP was subject to ESIAs as part of their permitting and funding processes.  These ESIAs included various bird surveys and analysis of impacts, including collision risk.  To mitigate collision risk the WPP adopted a turbine shut on demand approach where a team of bird observers present in the WPP area during spring and autumn issue instructions to temporarily shut down turbines when a risk of collision is observed.  This is based on certain criteria and has served as the basis for an effective system of collision avoidance and reduction which is now applied to all WPPs in the GoS, including those financed by EBRD.  Bird observers are complemented by radar in the spring and Post-Construction Fatality Monitoring PCFM is also undertaken to identify bird fatalities.  The ESDD determined that while the system is effective, there have been bird fatalities and various areas for improvement have been identified, which would further reduce fatalities.  These areas for improvement will be a required through the ESAP.Subsequent to the development of the WPP, various lenders supported private sector WPPs outside the IBA.  The ESIAs for these WPPs determined that the IBA is critical habitat as per EBRD PR6 and IFC PS6.  Projects located in critical habitat are required to demonstrate a net gain for the critical habitat impacted by the Project.  In the case of the WPP, impacts on critical habitat features migrating birds are an ongoing risk during the operation of the WPP.  In addition to measures to improvement turbine shut down approaches, Project has developed a draft Biodiversity Action Plan which sets out indicative actions necessary to meet the net gain requirement.  This involves actions within the Project area and along the flyway in other countries.  The BAP is being finalised, stakeholders engaged and the actions costed.  Implementation of the BAP will be an ESAP requirement. The WPP is currently operated by an OM contractor which has in place various management systems and procedures.  The ESDD has identified some areas where improvements are required to ensure alignment with EBRD's ES requirements.  Further actions have identified to ensure full alignment with EBRD's PR2 with respect to project specific HR policies and procedures and PR4 with respect to certain health and safety provisions.  The WPP is distant to inhabited areas and therefore impacts, such as noise, shadow flicker, etc., are limited.  The WPP is located on state land and no land acquisition was required.  The ESDD has identified some improvements necessary for security management and the management of waste, including hazardous waste.  A worker and public grievance mechanism is in place.  Stakeholder engagement was undertaken as part of the ESIA disclosure process but subsequent stakeholder engagement appears to be limited.  A stakeholder engagement plan has been developed as part of the ESD.  All required actions will be included in the ESAP. 09 Apr 2024Translation: Gabal El Zeit windfarm Arabic Type: PDF, Published: 18.04.2024, Language: ArabicFurther information regarding the EBRD's approach to measuring transition impact is available here.For business opportunities or procurement, contact the client company.For business opportunities with EBRD not related to procurement contact:Tel: +44 20 7338 7168Email: projectenquiriesebrd.comFor state-sector projects, visit EBRD Procurement:Tel: +44 20 7338 6794Email: procurementebrd.comSpecific enquiries can be made using the EBRD Enquiries form.The ESP and the associated Performance Requirements PRs set out the ways in which the EBRD implements its commitment to promoting "environmentally sound and sustainable development".  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders' concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project's environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.More information on the EBRD's practices in this regard is set out in the ESP.The EBRD's Office of the Chief Compliance Officer OCCO promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to complianceebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.Specific requests for information can be made using the EBRD Enquiries form.If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful e.g. through the Client's Project-level grievance mechanism or through direct engagement with Bank management, individuals and organisations may seek to address their concerns through the EBRD's Independent Project Accountability Mechanism IPAM.IPAM independently reviews Project issues that are believed to have caused or to be likely to cause harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipamebrd.com to get guidance and more information on IPAM and how to submit a request.

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