The Egyptian Electricity Transmission Company (EETC) will sign a power purchase agreement with Saudi Arabian company Alfanar next week, a report said.

Alfanar paid the third instalment of the cost-sharing agreement after an increase of its value by about 35 per cent, Mohamed Abdel Karim, director of Alfanar’s renewable energy projects in Egypt, was quoted as saying in the Daily News Egypt report.

He explained that the company managed to complete the financial closure of the new solar power plant with a capacity of 50MW and investments of up to EGP100 million ($5.5 million). This project will be financed by the European Bank for Reconstruction and Development (EBRD) and the Islamic Development Bank (IDB).

Alfanar has allocated $200 million for the establishment of two new and renewable energy projects in Egypt, with a total capacity of 100MW and operating according to the feed-in tariff, the report said.