ACWA power receives US$114 mn financing package for 200 MW solar project in Egypt

The European Bank for Reconstruction and Development (EBRD), the OPEC Fund for International Development (the OPEC Fund), the African Development Bank (AfDB), the Green Climate Fund (GCF) and Arab Bank has signed a US$114 million financing package with ACWA Power for the construction of the largest private solar plant in Egypt, the Kom Ombo project.

The development of the Kom Ombo solar plant will add 200 MW of energy capacity, increasing the share of renewable energy in Egypt’s energy mix and further promoting private-sector participation in the Egyptian power sector.

The package comprises loans of up to US$ 36 million from the EBRD, US$ 18 million from the OPEC Fund, US$ 17.8 million from the AfDB, US$ 23.8 million from the GCF and US$ 18 million from Arab Bank. This is in addition to equity bridge loans of up to US$ 14 million from EBRD and US$ 33.5 million from Arab Petroleum Investments Corporation (APICORP).

The Kom Ombo plant will contribute to the Egyptian government’s target to generate 42 percent of the country’s electricity from renewable energy sources by 2035 while delivering one of the lowest generation tariffs on the continent. Once operational, the new utility-scale plant will serve 130,000 households.