EBRD and IDC to finance 50 MW solar project in Aswan, Egypt

Alfanar Company, a Saudi based electrical power company has announced the signing of facility agreement for US$57 million with the European Bank for Reconstruction and Development (EBRD) and Islamic Corporation for the Development of the Private Sector (ICD).

The EBRD US$ 28.5 million loan will be complemented by a parallel loan provided by the ICD that would comprise a secured long term loan for the construction of 50 MW Solar PV projects under Egypt's round II FiT scheme.

The project will be among the first utility scale solar project to be implemented in Egypt exposing the country's significant renewable energy potential. All of the facilities will be located in the proposed 1.8-GW Benban solar complex in Egypt's Aswan province and will be supported by Egypt's FiT programme for projects of up to 50 MW that is aimed at delivering more than 4 GW of wind and solar power capacity.

This project will offset 900,000 tonnes of carbon dioxide (CO2) emissions each year, once operational. The Power Purchase Agreement (PPA) for the project was signed by the project company with EETC on May 7th 2017.

Mr. Sabah Mohammed Al Mutlaq, Chairman of Alfa Solar and Vice-chairman of Alfanar group, said:

“The collaboration with EBRD and ICD for financing this project had been a pivotal element in taking the project forward. Globally, countries are experiencing the effects of climate change and renewable energy investors and financier's role is vital to cultivate more investment in the region for green energy and scale down the effects of global warming.

This partnership will assist the socio-economic development in Benban by providing local population with infrastructure, job creation and skills training. The region has tremendous potential when generating power from the natural resources, and Alfanar will continue to actively consider venturing with EBRD as well as ICD for additional renewable technology projects in solar, wind as well as energy from waste”.

As we reported in August, the European Bank for Reconstruction and Development (EBRD) and Proparco  provided US$116 million of financing for the construction and operation of two 50 MW solar photovoltaic power plants in Egypt. These facilities will be constructed, operated and owned by two Egyptian subsidiaries of the French company EREN Renewable Energy and Access Power