Mazghouny & Co has advised Scatec ASA as Egyptian legal counsel to the sponsor on the structuring and USD 217 million non-recourse project financing of the first phase of the Dandara solar power and battery energy storage system (BESS) project in Egypt, as well as Scatec’s equity partnership with the National Bank of Egypt (NBE).
With a total planned investment of approximately USD 650 million, Dandara is a landmark renewable energy development and the first utility-scale privately owned renewable energy project in Egypt structured to supply electricity to an industrial offtaker through the national electricity grid. The project marks a significant step towards the liberalisation of Egypt’s electricity market, enabling greater private sector participation in electricity generation and supply, while supporting the decarbonisation of energy-intensive industries.
Mazghouny advised Scatec on all Egyptian legal and regulatory aspects of the transaction, including the overall project and financing structure, the review and negotiation of the financing documents, and the drafting and negotiation of the equity partnership agreements with NBE. The firm’s mandate also encompassed the structuring, review and negotiation of the interconnection arrangements with the Egyptian Electricity Transmission Company (EETC).
The financing is provided by the European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB) and African Development Bank (AfDB), representing approximately 80% of the first phase’s estimated USD 271 million investment cost. NBE will participate as an equity investor with a 20% ownership interest in the project.
The signing of the financing terms, interconnection agreements and NBE equity partnership was marked by a ceremony attended by Egyptian Prime Minister and Minister of Electricity and Renewable Energy, reflecting the strategic importance of the project to Egypt’s renewable energy and industrial development objectives.
Located in Nagaa Hammadi, Qena Governorate, the first phase comprises a 500 MW solar PV plant and a 100 MWh battery energy storage system. The project will supply renewable electricity to Misr Aluminium Company (EgyptAlum), Egypt’s largest aluminium producer, under a 25-year power purchase agreement backed by a sovereign guarantee.
The overall Dandara development is expected to comprise approximately 1 GW of solar generation capacity and 200 MWh of battery storage, supplying around one-third of EgyptAlum’s electricity requirements. The project is expected to generate approximately 1.4 TWh of renewable electricity annually and avoid more than 550,000 tonnes of CO₂ emissions each year, supporting the decarbonisation of Egypt’s aluminium industry and strengthening the competitiveness of Egyptian exports in international markets. Construction of the first phase is commencing, with commercial operations targeted for the first half of 2028.
The transaction builds on Mazghouny team’s extensive experience advising on complex renewable energy projects, project finance, electricity regulation and infrastructure development in Egypt, including its work advising Scatec on the landmark Obelisk solar and battery storage project and the recently announced renewable energy investment platform established between Scatec and EBRD.
Mazghouny team continues to advise international sponsors and investors on the development, financing and implementation of major energy and infrastructure projects in Egypt, including innovative regulatory structures enabling private sector participation in the electricity market.
