The Egyptian Government has approved €340m for a 200MW wind farm in the Red Sea region.
The wind farm will be located in the south of Zafarna and about 120km north of Hurghada on the Red Sea of Egypt.
The tender procedure is anticipated to start in December 2009. The wind farm is not expected to complete and generate electricity before 2014.
The country plans to generate 12% of its electricity by 2020.
The European Investment Bank, the European Commission and KfW Bankengruppe (KfW) are financing €270m of the total cost.
KfW has confirmed that it will contribute to the project, but said that it will not disclose the amount it is to contribute until it gets final approval from the German government.
Recently, Egypt issued a tender for a 250MW wind farm in the same area and received bids from 26 international companies.