Mazghouny & Co is pleased to have supported Scatec on the development and financing of the Obelisk project in Egypt, which has now reached full commercial operations.
With 1.1 GW of solar capacity and a 100 MW/200 MWh battery energy storage system, Obelisk is Africa’s largest hybrid solar and battery installation. The project will supply electricity to the Egyptian Electricity Transmission Company (EETC) under a 25-year power purchase agreement.
Mazghouny & Co has acted as Egyptian legal counsel to Scatec as main sponsor throughout the development of the project and to the project company as borrower.
Our role has spanned the principal Egyptian-law workstreams of the project, including advising on the review, drafting and negotiation of the project agreements and supporting negotiations with the relevant governmental entities, including in relation to the project’s battery energy storage arrangements.
The firm also advised on the project financing through financial close, acting as Egyptian counsel to the project company and supporting the financing workstream with EBRD, AfDB, BII and EIB as senior lenders. Our role included advising on the Egyptian-law aspects of the financing and security arrangements, supporting the negotiation and finalisation of the finance documents from an Egyptian-law perspective, and coordinating the extensive Egyptian conditions precedent process and local corporate and regulatory requirements required to bring the financing to close.
On the equity side, Mazghouny & Co advised on the partnership arrangements involving Scatec, National Bank of Egypt and EDF Power Solutions, and supported the drafting and review of the investment documentation relating to Norfund’s participation in the project. Scatec remains the controlling shareholder, alongside NBE, Norfund and EDF Power Solutions as minority equity partners.
Obelisk has been a defining mandate for our team, not least for the opportunity to help develop and negotiate the contractual framework for the utility-scale battery energy storage project, including the first BESS PPA and related project documents in Egypt.
Seeing that framework move from first-of-its-kind documentation through financing and ultimately into commercial operations is a particularly meaningful milestone for our team, and one that reflects the depth of our involvement in the development of Egypt’s evolving renewable energy and storage market.
Our team continues to advise sponsors, project companies, lenders and investors on the development and financing of renewable energy and energy storage projects in Egypt. For more information, you can reach out to our team at contact@mazghouny.com.
