The government is set to announce the completion of the sale of the 580 MW Gabal El Zeit wind power complex to the UAE-based Alcazar Energy within days, a senior government official tells EnterpriseAM. Alcazar did not respond to a request for comment by the time of publication.

The transaction, a cornerstone of Egypt’s state privatization program, is expected to close at a valuation exceeding USD 420 mn — a significant jump from the USD 300–350 mn range previously discussed with the UK-based Actis, our source added.

Why this matters: This isn’t just about ticking off a key target in the government’s privatization program — it’s about the Sovereign Fund of Egypt sticking to its guns when it comes to valuations. By securing a price tag of over USD 420 mn, the government has signaled to the market that it is no longer willing to settle for fire sale prices to meet IMF-driven divestment targets.

Under the agreement, the cost of electricity produced by Alcazar will be denominated in USD but settled in EGP at the prevailing exchange rate, we were told. This structure protects the developer from currency volatility — a major pain point in the past for foreign investors — while ensuring the state does not face an immediate hard currency drain for offtake payments and, maybe, just maybe, presents a scalable template for other PPAs to follow.

What’s next? Following the signing, Alcazar will begin technical upgrades to the aging turbines to restore the plant to its maximum 580 MW capacity, our source said.

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