Egyptian Resorts to build US$2.5m solar power plant

Cairo, Egypt (Capital Markets in Africa) — Egyptian Resorts Company has signed a long-term lease contract with KarmSolar for the establishment of a solar power plant at a cost of US$2.5 million, the company reported in the filling to the Exchange on Sunday.

The plant, whose production capacity would be not less than 2 Megawatt, is scheduled to start operation by the second half of 2016, the company added.

In addition, Egyptian Resorts Company will lease a 50,000 sqm land area in Sahl Hashish to KarmSolar for a period of 27 years, on which KarmSolar will build and operate a solar power plant. And in return, Egyptian Resorts Company will receive 2% of the project revenues.

The new contract will have no positive impact on the company’s financial statements in the near future, said Mohamed Kamel, Managing Director, Egyptian Resorts Company.

He added that the project is aimed to overcome the energy shortage and adopt sustainable growth standards.

Egyptian Resorts Company previously posted EGP 3.2 million in net loss for the first quarter of 2015, down 73.4% year-over-year.