PROJECT

Projects

Environmental & Social Review Summary

Project Number

48684

Company Name

Alcazar Energy Management Services L.L.C-FZ

Date ESRS Disclosed

Sep 25, 2026

Country

Egypt, Arab Republic of

Region

Africa

Last Updated Date

Sep 25, 2026

Environmental Category

A - Significant

Status

Pending Approval

Sector

Wind Power - Renewable Energy Generation

Industry

Infrastructure

Department

Regional Industry - INF Africa

Project Description

IFC is considering a debt investment of up to US$120 million for the acquisition, operation and maintenance of a 580MW Gabal El Zeit (GEZ) wind farm, in the Red Sea Governorate, Egypt (the Project) to be sponsored by Alcazar Energy Partners III SLP, managed by its general partner, Alcazar Energy Management Services (Alcazar Energy). The Project is part of Egypt’s state-owned asset privatization program initiated by the Government of Egypt (GoE) in early 2023, under which the New and Renewable Energy Authority (NREA) is divesting this operational windfarm. The Project entered into a 25-year Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) guaranteed by the Ministry of Finance on terms consistent with those executed under the Build-Own-Operate (BOO) Program.

The 580 MW GEZ wind farm was constructed and achieved operations in three phases between 2014 and 2018: (i) GEZ 1, comprising 120 turbines across 38.5 km2, commissioned as 200 MW in August 2014 and expanded by a further 40 MW in July 2018, financed by Credit Institute for Reconstruction (KfW) and the European Investment Bank (EIB); (ii) GEZ 2, comprising 110 turbines across 44.9 km2, commissioned in March 2017 and financed by Japan International Cooperation Agency (JICA); and (iii) GEZ 3, comprising 60 turbines across 107.2 km2, commissioned in June 2018 and financed by the Spanish Corporate Internationalization Fund (FIEM). The Project will ultimately be divided into three subprojects, with IFC providing a separate debt facility to each of the three borrowers. The Overhead Transmission Lines (OHTLs) and the substation are existing facilities and are not part of the Alcazar Energy acquisition, but which nonetheless will require Post Construction Fatality Monitoring (PCFM), within Alcazar Energy acquired concession. The GEZ wind farm is currently operated and maintained by Siemens Gamesa Renewable Energy (SGRE). Following the acquisition, SGRE is expected to remain involved in the Operation and Maintenance (O&M) of the facility, under Alcazar Energy's management and its E&S Requirements and Management Systems. The precise scope, duration and contractual structure of these arrangements are currently under negotiation among the parties. Potential arrangements under consideration would include: (i) continued SGRE involvement in O&M services; (ii) spare parts provision, and (iii) Supervisory Control and Data Acquisition (SCADA) service, either directly or in conjunction with a qualified third-party service provider.

The Project is located within the Red Sea/Rift Valley flyway, a globally important migration corridor used annually by over 1.5 million Migratory Soaring Birds (MSBs) of 37 species and is located within the GEZ Important Bird Area (IBA) and Key Biodiversity Area (KBA). The IBA is designated to protect a strategic location within the flyway where birds are funnelled across the Gulf of Suez (GoS) at its narrowest crossing point during their spring and autumn migration, often landing in large numbers and flying at low altitudes; numbers crossing the Project area each season represent more than 1% of the flyway population for at least 21 species. As part of the proposed finance, no increase in tip height or addition of new turbines will take place during the lifetime of the Project.

Overview of IFC's Scope of Review

The E&S due diligence (ESDD) consisted of reviewing E&S information provided by Alcazar Energy, such as: i) the Environmental and Social Impact Assessments (ESIAs) and the environmental approvals for the sub-projects; ii) the Active Turbine Management Program (ATMP) and PCFM reports, including the seasonal MSBs monitoring reports; iii) the Critical Habitat Assessment (CHA), Biodiversity Action Plan (BAP) and Cumulative Effects Assessment (CEA); iv) Alcazar Energy’s corporate E&S management system (ESMS), including its resource efficiency, emergency preparedness and response, and subcontractor management plans; and v) SGRE’s Health, Safety and Environment (HSE) management documentation.

The ESDD also included discussions with the NREA site management team and SGRE, the O&M contractor. An E&S appraisal site visit took place in March 2026 together with the Lenders’ E&S Advisor (LESA), during which, the radar room, several wind turbines, some bird observation vantage points, sections of the OHTL, waste and wastewater storage areas, among others, were assessed and several worker interviews held.

To characterize biodiversity risks, the E&S appraisal also included consultation with the ornithological teams implementing the ATMP and PCFM programs. This included a review of the baseline monitoring methodology, consultation with the bird migration and the carcass monitoring teams, observation of the radar operation and a visit to a sample of bird observation vantage points, followed by telephone consultations with biodiversity and nature conservation stakeholders. A review of the impact on the Project in relation to the IBA/KBA and the CHA is described under the Performance Standard (PS) 6 section.

Contextual risks relevant to the Project included security, water availability, hunting and trapping of resident and migratory bird species, gender representation, labor policies, and working conditions.

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Broad Community Support

Environmental & Social Action Plan

Client Documentation

File Name Actions
Gebel el Zeit_WF_BAP_EN.pdf
GEZ-WINDOM-SOC-SEP EN.pdf
Gebel el Zeit_WF_CHA_EN.pdf
Gebel el Zeit_WF_CEA_EN.pdf