The Asian Infrastructure Investment Bank (AIIB) has announced up to US$210 million in debt financing to tap Egypt’s renewable energy potential. This solar power project will increase Egypt’s power generation capacity, reduce the country’s dependence on gas and fuel for electricity generation, and will help the country meet its commitments under the Paris Climate Agreement as it moves towards an environmentally sustainable energy mix.
The project will consist of 11 greenfield solar power plants with an aggregate capacity of 490 MW. Egypt’s huge solar resources, together with its strategic vision for green growth, will allow this project to generate global environmental benefits by avoiding Greenhouse Gas (GHG) emissions of more than half a million tons of CO2 per year. A syndicate of lenders including the Bank will provide long-term debt financing on a limited recourse project finance basis.
D.J. Pandian, AIIB Vice President and Chief Investment Officer, stated:
"Investing in clean, renewable energy is a big part of our strategy to promote a sustainable and low-carbon future for Asia. We are supporting this project because it contributes to Egypt’s renewable energy capacity, and it will help position the country as a regional energy hub, which will have economic benefits for the entire region."
The program will increase Egypt’s generation capacity so it can export energy during peak hours and improve its connectivity in the Middle East, Asia, Europe and Africa. The project will be co-financed by AIIB and the International Financial Corporation (IFC), and is attracting additional lenders from the private sector and bilateral financial institutions.
Egypt's New and Renewable Energy Authority (NREA) has launched a tender for the development of a 250MW solar plant in the Gulf of Suez.
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Read moreThe International Finance Corporation IFC, a member of the World Bank Group. has approved an investment of US$635 million that will help construct, operate and maintain up to 11 solar power plants in Egypt.
Read moreThe European Bank for Reconstruction and Development (EBRD) has approved a US$500 million framework to finance renewable energy in Egypt.
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