Egypt's cabinet approved on Tuesday a deal between German Siemens and the state-owned electricity holding company to establish three power stations with a capacity of 14,400 megawatts.

The projects, which are worth €8 billion ($8.7 billion), include establishing and operating wind power stations with a power generating capacity of 2000 megwatts, reported state-owned news agency MENA.

The German company will also establish a factory to make the blades used in wind farms with a capacity to produce 300 blades for 100 wind turbines to reach 340 megawatts annually.

During an economic development conference held in Egypt's resort town Sharm El-Sheikh, the industrial giant agreed with the Egyptian government to establish a wind power plant and a new wind rotor blade factory.