ACWA Power secures $123mn for Egypt’s solar project – EQ Mag
The financing package was signed by six different institutions
Saudi’s integrated utility developer ACWA Power has revealed in a press release that it has signed a $123mn (AED452mn) financing package to develop the 200MW Kom Ombo project, a utility-scale solar power plant in Egypt.
Financing institutions for this project include European Bank for Reconstruction and Development (EBRD), OPEC Fund for International Development (the OPEC Fund), African Development Bank (AfDB), AfDB’s Sustainable Energy Fund for Africa (SEFA), Green Climate Fund (GCF), Arab Petroleum Investments Corporation (APICORP) and Arab Bank.
The package comprises loans of up to $36mn (AED132mn) from the EBRD, $14.6mn (AED53.6mn) from the OPEC Fund, $14.4mn (AED52.9mn) from the AfDB, $34.5mn (AED127mn) from the GCF, $14.8mn (AED54.4mn) from Arab Bank and $10mn (AED36.7mn) from the SEFA under the COVID-19 IPP relief programme. The project already has equity bridge loans of $14mn (AED51.4mn) from the EBRD and $45mn (AED165mn) from the Arab Petroleum Investments Corporation (APICORP).
ACWA Power CEO, Marco Arcelli, said: “ACWA Power’s successful acquisition of financing support for our renewable project is a significant milestone. We’re fully committed to fast-tracking the project’s development while staying true to Egypt’s renewable energy targets.” Adding that the Kom Ombo solar project further demonstrates the private sector’s active involvement in Egypt’s energy transition.
The Kom Ombo plant will be located less than 20km from Africa’s biggest solar park, the 1,465mw Benban complex, and is expected to be commercially operational in Q3 2024. Once fully functional, the new utility-scale plant will serve 130,000 households.
Furthermore, it will contribute to the Egyptian government’s target to generate 42% of the country’s electricity from renewable energy sources by 2035 while delivering one of the lowest generation tariffs in Africa.
Source: constructionweekonline
