In cooperation with its long-term partner OAK, WTEI has completed the feasibility study for the first WTE plant in Egypt. Previously, we reported that WTEI entered a consortium for waste to energy projects. Later in August 2020, the feasibility study started to prepare the project for funding.
With a particular focus on the development of Concession Agreement (CA), Power Purchase Agreement (PPA) and Financial Model, such documentation represents an intellectual platform for current and future opportunities.
Content of the feasibility study for the first WTE plant in Egypt
Feasibility study development assumes preparation of the Request for Information (RFI), which usually contains 60-70 questions. So, these questions are related to the location of the plant, geology, seismic data, underground water resources, city grid connections etc. Ecology-related questions have a special focus in RFI: distance to nearest civil houses, allowed chimney height, climatic conditions. Local developer to answer this comprehensive RFI, in close cooperation with governmental authorities. Additionally, RFI accents on the involvement of a local man forces and entities into the project.
Later, with RFI answers in hand, we start communications with a technology provider(s). The goal is to confirm the applicability of the technology for the particular project, reach a mutual understanding of CAPEX and OPEX, and provide data for the final financial model. A Technical Proposal from a technology provider is an important part of the feasibility study process. Therefore, the final financial model of the project uses data represented in the Technical Proposal.
For the first WTE plant in Egypt, OAK and WTEI developed two independent financial models. The last cross-checking of models and final fixes in the feasibility study required a special meeting. Founders of WTEI and OAK met in London at the beginning of December to accomplish the feasibility study analysis and discuss more 15 projects in cooperation pipeline. As the result, feasibility study for the first WTE plant in Egypt was considered as accomplished. OAK plans to reach financial closure in January and commence funding of the project.
