African Development Bank approves $27m loan for Egypt solar project
The African Development Bank (ADB) is going to provide a $27.2m loan for the 200MW photovoltaic (PV) solar project in Egypt, which will be developed by Saudi Arabia’s Acwa Power
The African Development Bank (ADB) has approved a $27.2m loan for the 200MW photovoltaic (PV) solar Kom Ombo project in Egypt, which will be developed as an independent power producer project (IPP) by Saudi Arabia’s Acwa Power.
ADB’s board of directors approved the $27.2m loan on 3 March. The total cost of the Kom Ombo project is estimated to be $156.4m.
In addition to ADB’s funding, which is structured as a senior loan, the European Bank for Reconstruction and Development (EBRD), the Green Climate Fund (GCF), Arab Bank and the OPEC Fund for International Development will contribute funding.
“We are delighted to support this project that will deliver one of the lowest generation tariffs on the continent,” said Kevin Kariuki, the ADB’s Vice President for, Power, Energy, Climate and Green Growth in released statement following the loan approval. 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 Kom Ombo project aligns with Egypt’s national Integrated Sustainable Energy Strategy and the ADB'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.
Energy & Utilities reported in February that India’s Sterling & Wilson had been awarded a contract worth $127.5m for the engineering, procurement and construction (EPC) contract on the Kom Ombo project.
Acwa Power was selected as the preferred bidder in April 2019 after submitting the lowest tariff proposals of 2.752 $cents a kilowatt hour ($c/kWh) and 2.7499$c/kWh in August 2018.
In September 2019, EETC appointed three firms to provide advisory services for the 200MW solar IPP.
US/Indian firm Synergy Consulting was appointed as financial adviser, US-based law firm Baker Mckenzie as legal advisor and US firm Sargent & Lundy as technical adviser.
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