Page 504 - Sustainable Cities and Communities Design Handbook

474 Sustainable Cities and Communities Design Handbook

(UNDESA, 2016). Another proposed project that will provide both social and
economic benefits is the “King Salman bin Abdulaziz Bridge” that would
serve to connect Egypt and Saudi Arabia across the Strait of Tiran. Con-
struction of the causeway could result in job creation for the Egyptian popu-
lation as well as potential for Saudi Arabian investment in the Egyptian
economy. Construction of this magnitude is not without environmental con-
cerns, especially for the reef ecosystems and the threatened Red Sea dugong
population; however, environmental NGOs such as the Hurghada Environ-
mental Protection and Conservation Association have stated that they would
be placated by a thorough environmental impact assessment, which has been
required by both the Egyptian government and the EEAA since passage of
Law 4/1994 (Wahaab, 2003; Walker, 2013; Al Jazeera, 2016).
Vision 2030 also emphasizes economic growth and innovation. The gov-
ernment is emphasizing a customizable, knowledge-sharing, digital economy
and sees science, technology, and innovation as key to economic growth. To
accomplish this, it is starting from ground-up by creating a legal and regula-
tory framework and financial instruments to support this futuristic, sustainable
economic model. And to fuel the new economy, Egypt is maintaining the
strategy set forth in 2008. This mandates that 20% of generation be from
renewable sources by 2020 with wind power representing 12% of the total
electricity generation (w7200 MW). The 7200 MW capacity will be reached
through two paths:

1. “State-owned projects implemented by the NREA with total capacity of
2375 MW (represents 33% of total installed capacity), financed through
governmental agreements.
2. Private sector projects with total capacity of 4825 MW (represents 76% of
total installed capacity). Policy of increasing the participation of private
sector will include two phases:-
a. Phase I: Adopting Competitive Bids approach as the Egyptian Elec-
tricity Transmission Company will issue tenders internationally
requesting private sector to supply power to build, own, operate wind
farms and selling electricity for the company with price agreed upon
between the company and the investor.
b. Phase II: Application of Feed-in-tariff system, taking into consideration
the prices and experience achieved in phase I (NREA, 2016).”

The government has also established incentives to stimulate private sector
participation, particularly in wind generation, which includes the aforemen-
tioned competitive tender and bilateral agreements, and long-term Power
Purchase Agreements (PPAs) (20e25 years). Additionally, the government of
Egypt will guarantee all financial obligations under the PPA and investors will
benefit from selling certificates of emission reduction resulting from project