Jordanian Electric Power Company and CTIP officially announced their withdrawal from the solar energy feed-in tariff projects. They informed the New and Renewable Energy Authority (NREA) of their decisions. In addition, five other companies plan to withdraw from the feed-in tariff projects due to their inability to secure the required funding for the project and complete the financial closure according to the timetable set by the Ministry of Electricity, scheduled to end on Thursday.
According to sources in the ministry, 30 companies of those participating in the second phase of the feed-in tariff projects. These companies have signed land usufruct agreement with the New and Renewable Energy Authority (NREA).
According to the sources, 20 companies submitted their initial documents to complete the financial closure, while they will complete other required documents on Thursday. They noted that the financing institutions demanded the companies to provide their letters of guarantee again, and the companies are doing their best to complete all documents by Thursday.
The sources said that the Egyptian Electricity Transmission Company will begin studying the documents submitted by the companies by next week, and it will inform the winning companies within maximum two months.
Daily News Egypt obtained information that other five companies could not secure the required financing for the projects, which means they will withdraw from the feed-in tariff projects.
Wael El Nashar, chairman of Onera Systems, one of the five companies willing to withdraw from the project, said that his company is still negotiating with the international financial entities to complete the financial closure of a 50MW solar power plant in the second phase of the feed-in tariff project. He added that in case his company failed to reach an agreement with any of these entities in the coming few hours, the company will be forced to withdraw from the project.
A number of experts believe that the withdrawal of some companies will not affect the feed-in tariff projects, as many other companies are capable of completing the financial closure on time.