Energy and Infrastructure

Energy and infrastructure projects in Egypt involve several regulators, state counterparties and long-term contracts, and a defect in the early structuring can affect the whole project, including its financing. Egypt’s electricity sector has also been opening to private participation under the Electricity Law (Law No. 87 of 2015), which creates opportunities for foreign investors and developers, and new legal questions to manage.

Al Majidi Law Firm advises international developers, investors, contractors and lenders on energy and infrastructure projects in Egypt, across renewables, oil and gas, power and public infrastructure. We support you from initial structuring through licensing, contracting, financing and, where needed, dispute resolution.

Our Energy and Infrastructure Services in Egypt

Regulatory Compliance and Licensing

Energy projects in Egypt depend on approvals from sector authorities. We advise on the requirements of the Egyptian Electric Utility and Consumer Protection Regulatory Agency (EgyptERA), the Egyptian Natural Gas Holding Company (EGAS) and the Egyptian General Petroleum Corporation (EGPC), and assist with:

• Licences, permits and approvals for power generation, distribution and other energy activities.
• Regulatory frameworks for renewable and private-sector electricity projects.
• Environmental and safety requirements for energy and infrastructure projects.

Project Structuring and Development

We help you choose and document the model that fits your project and risk allocation, including:

• Public-private partnerships (PPP), build-operate-transfer (BOT) and build-own-operate (BOO) structures.
• Project agreements such as engineering, procurement and construction (EPC) contracts, power purchase agreements (PPAs) and service and operation contracts.
• Land acquisition, zoning and environmental approvals.

For the drafting and negotiation of the underlying contracts more broadly, see our Commercial Contracts practice.

Renewable Energy and Sustainability

Renewable energy has been a priority for the Egyptian electricity sector, and the regulatory framework continues to develop, including rules for private-to-private electricity schemes based on renewable generation. We advise developers and investors on:

• Solar, wind and other renewable projects, from site to offtake.
• Grid connection, licensing and offtake arrangements.
• Green financing and sustainability-linked structures.

Energy Transactions and Project Finance

• Acquisitions, joint ventures and investments in energy and infrastructure businesses, including legal due diligence. See our Corporate and M&A practice.
• Project finance, debt restructuring and capital raising in local and international markets. See our Capital Market practice.
• Risk allocation across project documents, for sponsors, lenders and contractors.

Infrastructure and Construction

We support large-scale infrastructure projects in transport, utilities and public facilities, advising on construction agreements, operation and maintenance contracts and supply arrangements, and on the regulatory approvals they depend on.

Disputes in Energy and Infrastructure

Long-term projects can give rise to delay claims, payment disputes and regulatory conflicts. We represent clients in arbitration, litigation and negotiation concerning project and infrastructure disputes. Learn more about our Litigation and Dispute Resolution practice.

Why Developers and Investors Choose Al Majidi

• Sector-specific regulatory knowledge. We understand the roles of the different energy authorities and the licensing steps each project has to follow.
• Legal advice from structure to delivery. Our corporate, contracts, finance and disputes teams can support each stage of your project.
• Attention to counterparty risk. Many projects involve state or state-owned counterparties, and we help you allocate risk and choose the right dispute resolution clauses.
• Support for international sponsors. We work in English and coordinate with your headquarters, lenders and international advisers.

Frequently Asked Questions

Can foreign companies invest in power generation in Egypt?
Yes. The Electricity Law allows private sector participation in electricity generation and distribution, subject to licensing and the applicable regulatory framework. The requirements depend on the type of project.

Which authorities regulate energy projects in Egypt?
It depends on the sector. EgyptERA regulates electricity, EGAS is involved in natural gas, and EGPC in petroleum. Other bodies, such as the New and Renewable Energy Authority, are involved in renewable projects. We identify the authorities relevant to your project at the outset.

What structures are used for infrastructure and energy projects in Egypt?
Common structures include PPP, BOT and BOO models, as well as direct private investment where the framework allows. The right structure depends on the project, the counterparty and the financing.

Who are the typical offtakers under a PPA in Egypt?
For power projects, the offtaker is often a state-owned entity, such as the electricity transmission company, a distribution company or a renewable energy authority, depending on the scheme. The offtaker’s identity affects your contract terms and risk allocation.

How are disputes on energy and infrastructure projects usually resolved?
Arbitration is commonly used in large project and government contracts. The right clause depends on the parties and the contract, and is best agreed at the start of the project.

Do renewable energy projects need environmental approval?
Energy and infrastructure projects generally require compliance with environmental requirements, which vary by project type and size. We advise on the approvals your project needs.

Speak to Our Energy and Infrastructure Team

Planning an energy or infrastructure project in Egypt, or facing a project dispute? Contact Al Majidi Law Firm for a confidential discussion of your project and the legal steps involved.

Contact Us · info@almajidilaw.com