The International Finance Corporation (IFC), a member of the World Bank Group, has announced the completion of a $653 million debt package to finance building 13 solar power plants near Aswan in Egypt, expected to be part of the largest solar park in the world.
The project has a generating capacity of up to 752 megawatts of solar power and is a Nubian Suns Feed-in-Tariff Financing Programme targeted at providing power to more than 350,000 residents and create up to 6,000 jobs during construction, the IFC said in a release issued on Sunday 29 October 2017.
It is also part of efforts to overcome frequent energy shortages and take advantage of year-round sunshine in Egypt.
In 2014, the Northern Africa country announced plans to develop renewable energy, a prospect that has enticed foreign investors.
IFC and a consortium of nine international banks will provide a $653 million debt package to finance construction of 13 solar power plants, which will join 19 other plants to make up the Benban Solar Park – the largest private-sector financing package for a solar photovoltaic facility in the Middle East and North Africa.
The total cost of the plants is expected to reach around $823 million to build, the IFC statement added.
The consortium includes Asian Infrastructure Investment Bank, African Development Bank, CDC, Finnfund, Oesterreichische Entwicklungsbank, Industrial and Commercial Bank of China, Europe Arab Bank, Arab Bank and Finance in Motion/Green for Growth Fund.
IFC, which provided $202 million in financing for the project, was studying other potential opportunities in Egypt with renewable energy, both in solar and wind, the released quoted Erick Becker, Manager of Infrastructure and Natural Resources For the Middle East and North Africa as saying.
Per the announcement, the funding for this project has more than doubled the renewable share of IFC’s global power portfolio in the past decade.
Egypt’s Feed-in-Tariff programme aims to use private-sector capital and expertise to help achieve its goal of providing 20 percent of its electricity from renewable resources by 2022.
The Multilateral Investment Guarantee Agency, also part of the World Bank Group, will provide $210 million in political risk insurance to 12 projects within Benban solar park.