Benban developers on brink of settling reported $102m cost-sharing deal

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The Egyptian Electricity Transmission Company (EETC) appears to be on the brink of settling a cost-sharing dispute with the 32 solar developers awarded generation capacity at the huge 1.8 GW Benban Solar Complex.

Financial news service Al Borsa News last week reported the EETC had agreed a EGP1.6 billion ($102 million) settlement with developers after last year stating an intent to raise the developer contribution to cost-sharing agreements by a quarter to take account of rising construction materials costs.

While Al Borsa reported the deal had only to be signed off by the EETC legal department, the Benban Solar Developer Association (BSDA) stressed that the final amount, although agreed, was still subject to change until it has been signed off.

BSDA secretary-general Ghada Darwish told pv magazine: “There are some pending points still to be cleared and agreed upon by both parties.”

Representatives of two Benban developers appeared to confirm that statement, with Spanish developer Acciona telling pv magazine it could not comment on the Al Borsa article as “negotiations are still ongoing and are commercial and in confidence.” A spokesperson for German peer ib vogt said: “We can confirm that ib vogt and the other developers involved in Benban projects have been discussing with [the] EETC regarding the most practical solution in relation to the cost overruns under the cost sharing agreement. We are not in the position to provide the details of the agreement until it is concluded.”

pv magazine also contacted Benban developers Scatec Solar, Alcazar Energy, ACWA Power, FAS Energy and Enerray, without response.

As pv magazine reported in February last year, the EETC wanted to raise the developer contribution to cost-sharing arrangements, which all renewables companies signed as part of their generation capacity awards.

 

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