New 200 MW PV solar power plant in Upper Egypt
Egypt, Kom Ombo: The African Development Bank’s Board of directors have approved $27.2 million in loan.
Image for illustration purposes
Egypt, Kom Ombo: The African Development Bank’s Board of directors have approved $27.2 million in loan.
The loan will be used for financing the design, construction and operation of a 200 MW PV solar power plant at Kom Ombo, in Upper Egypt on the river Nile.
The project is expected to lower electricity costs for businesses and residences, as well as reducing greenhouse gas emissions and creating construction and other jobs. The project’s total cost is estimated at $156.4 M.
In addition to the Bank’s financing, structured as a senior loan, the European Bank for Reconstruction and Development, the Green Climate Fund, Arab Bank and the OPEC Fund for International Development will contribute funding.
The plant, 800 km south of Cairo, is owned by ACWA Power, a leading Saudi Arabian developer, investor and operator of power generation and desalinated-water plants worldwide.
“We are delighted to support this project that will deliver one of the lowest generation tariffs on the continent,” said Kevin Kariuki, the Bank’s vice president for power, energy, climate and green growth. He added that the project supports Egypt’s energy transition and contributes towards the country’s achievement of its targeted 20 % share of renewables by 2022.
The project aligns with Egypt’s national Integrated Sustainable Energy Strategy and the Bank’s New Deal on Energy for Africa, which aims to increase the share of renewable energy through innovative financing in Africa’s energy sector. The project also advances the institution’s Light Up and Power Africa High-5 strategic priority.
The Bank’s deputy director-general for North Africa, Malinne Blomberg, said: “The newly approved transaction is a continuation of the Bank’s long-standing partnership with the government of Egypt and its strong support for the country’s reform agenda.”
Source: ESI Africa