World Bank considers $120 million investment in Egypt’s 580MW Gabal El Zeit wind farm

World Bank Group’s private-sector investment arm, the International Finance Corporation (IFC), is considering a debt investment of up to $120 million to support the acquisition and operation of Egypt’s 580-megawatt Gabal El Zeit wind farm by renewable energy investor Alcazar Energy Partners.

According to investment information disclosed by IFC on September 25, 2026, the proposed financing will support the acquisition, operation and maintenance of three operational wind farms at Gabal El Zeit in Egypt’s Red Sea Governorate.

The project, which has an estimated total cost of up to $460 million, is part of Egypt’s state-owned asset privatisation programme launched in 2023. IFC’s proposed financing comprises an A Loan of up to $120 million for its own account, alongside a $10 million interest-rate swap.

Alcazar Energy targets major Egyptian wind asset

The project will be sponsored by Alcazar Energy Partners III SLP, the third investment vehicle managed by Alcazar Energy Partners, an independent infrastructure fund manager focused on utility-scale renewable energy projects in growth markets.

The acquisition involves three wind farms with a combined capacity of 580MW that are currently owned by Egypt’s New and Renewable Energy Authority (NREA).

The project has a 25-year power purchase agreement with the Egyptian Electricity Transmission Company, guaranteed by Egypt’s Ministry of Finance, under terms consistent with the country’s Build-Own-Operate programme.

Siemens Gamesa Renewable Energy currently operates and maintains the wind farm and is expected to remain involved following the acquisition, although the precise scope and duration of its future role remain under negotiation.

Project forms part of Egypt’s privatisation drive

The Gabal El Zeit transaction forms part of Egypt’s efforts to monetise state-owned assets and attract private investment into strategic infrastructure.

IFC expects the project to generate fiscal benefits for the Egyptian government through an inflow of capital that could help reduce the country’s hard-currency debt and financing gap.

The project is also expected to lower the cost of power generation and support greater private-sector participation in Egypt’s renewable energy market.

Plans to extend the wind farm’s operating life by 10 years are expected to improve the asset’s efficiency and long-term economic and environmental contribution.

Alcazar expands renewable energy portfolio

Alcazar has managed two investment vehicles since 2014. Its first fund mobilised approximately $750 million across wind and solar assets, while its second fund closed at $490 million in May 2024 and is expected to mobilise about $2 billion in growth markets. The firm’s portfolio of assets in development and construction currently exceeds 3GW.

Daniel Calderon, co-founder and managing partner of Alcazar Energy Partners, has more than 25 years of experience in renewable energy investment and development.

Before founding Alcazar, Calderon served as head of origination and investment management at Masdar, where he led $7 billion in renewable energy investments, and previously held senior positions at GE Energy Financial Services.

The Gabal El Zeit project is located within the Red Sea/Rift Valley flyway, an important migration corridor for more than 1.5 million migratory soaring birds annually. The site is also within the Gabal El Zeit Important Bird Area and Key Biodiversity Area, making environmental considerations a significant component of the proposed investment.

IFC expects to make a board decision on the project on November 30, 2026, subject to approval.