RIYADH: Saudi Arabia’s ACWA Power has closed a $123 million financing package with a group of international banks to develop the 200MW Kom Ombo project, a utility-scale solar power plant in Egypt, the firm said in a statement.
The Kom Ombo project will be located about 20 km away from Africa’s biggest solar park, the 1,465MW Benban complex — another ACWA Power development — the company said, adding that the new utility-scale plant will serve 130,000 households once it is commercially operational in January 2024.
The loan was obtained from several regional and international financial institutions, including $36 million from the European Bank for Reconstruction and Development, $14.6 million from the Organization of the Petroleum Exporting Countries’ Fund for International Development, and $14.4 million from the African Development Bank.
The EBRD had earlier provided $14 million in equity bridge loans to the project, with another $45 million coming from the Arab Petroleum Investments Corp., the firm said.
The package also includes $34.5 million from the Green Climate Fund, $4.8 million from the Arab Bank, and $10 million from the Sustainable Energy Fund for Africa as part of the COVID-19 innovation public procurement aid program.
“The Kom Ombo solar project further demonstrates the private sector’s active involvement in Egypt’s energy transition. This accomplishment highlights the shared vision and purpose of various global financing institutions in achieving the Republic’s targets, which would not be possible without the trust and support of the government, the Egyptian people, and communities,” Marco Arcelli, CEO of ACWA Power, said.
He noted that the financing documentation was initially signed in April 2021 with EBRD, the OPEC Fund, GCF, ADB, and Arab Bank.
However, the changes in global supply chains caused by COVID-19 resulted in Kom Ombo’s timescale being extended.
The Kom Ombo facility will support Egypt in reaching its goal of producing 42 percent of its electricity from renewable sources by 2035, while also offering one of the lowest generating tariffs in Africa.
Source: arabnews
