Egypt’s cabinet approved plans on Wednesday to move ahead with privatizing the Gabal El-Zeit wind farm and offering Hurghada International Airport to a private operator, officials said.
The offering comes after an agreement with the IMF mission currently visiting Cairo to resume the state privatization program once tensions in the region eased following October’s ceasefire in the Gaza Strip, an informed source at the Finance Ministry told Al Manassa.
The cabinet agreed to complete procedures to offer the 580-megawatt Gabal El-Zeit wind power station, which belongs to the New and Renewable Energy Authority, under the government asset-sale program, according to a cabinet statement. The statement did not clarify whether the transaction would be an outright sale or a long-term usufruct arrangement.
The source, who requested anonymity, said companies including Saudi Arabia’s ACWA Power, UAE-based Alcazar Energy, and British investment firm Actis had submitted bids in recent days. Officials are assessing the offers to select the strongest financial proposal.
The government aims to raise about $400 million from the sale, the source said, but offers so far are below $300 million. The valuation gap could push authorities to accept a lower price to keep the IMF-backed privatization program on track, the source added.
The IMF mission began its visit to Cairo earlier this month to conduct the fifth and sixth reviews of Egypt’s extended fund facility program. The Fund had postponed disbursement of the program’s fifth tranche in July and decided to merge it with the sixth review because of delays in the government’s plans to exit state ownership of public companies in favor of the private sector.
In 2024, the planned sale of the Gabal El-Zeit wind farm triggered controversy, with critics accusing the government of giving up a major project for less than it cost to build. The Planning Ministry rejected that in an official statement, saying the government was offering investors a 25-year usufruct, after which the plant and the project’s land would revert to the state.
Hurghada airport as first test for aviation privatization
Separately, the Civil Aviation Ministry on Wednesday formally opened applications from consortia and specialized companies seeking to prequalify for the tender to choose a strategic partner to manage, operate, and develop Hurghada International Airport.
Hurghada was selected for the first phase of the airport offerings program because it is the country’s second-busiest airport by traffic and one of Egypt’s most important gateways for international tourism, as well as playing a central role in supporting economic activity in the Red Sea region, Civil Aviation Minister Sameh Elhefny said.
On Dec. 24 last year, Prime Minister Mostafa Madbouly said the government would open all airports to the private sector, stressing that the cabinet was ready to listen to any ideas from investors to expand Egypt’s aviation fleet.
