Saudi Arabia’s ACWA Power said Wednesday that it has secured a $123 million (EGP 8.6 billion) financing package to develop the 200 megawatts (MW) Kom Ombo solar project in Egypt.
The project is being financed by European Bank for Reconstruction and Development (EBRD), OPEC Fund for International Development (the OPEC Fund), African Development Bank (AfDB), AfDB’s Sustainable Energy Fund for Africa (SEFA), Green Climate Fund (GCF), Arab Petroleum Investments Corporation (APICORP) and Arab Bank.
The package comprises loans of up to $36 million from the EBRD, $14.6 million from the OPEC Fund, $14.4 million from the AfDB, $34.5 million from the GCF, $14.8 million from Arab Bank and $10 million from the SEFA under the COVID-19 IPP relief programme.
The project already has equity bridge loans of $14 million from the EBRD and $45 million from APICORP.
“ACWA Power’s successful acquisition of financing support for our renewable project is a significant milestone. We’re fully committed to fast-tracking the project’s development while staying true to Egypt’s renewable energy targets,” Marco Arcelli, CEO of ACWA Power said in a statement.
While the financing documentation was originally signed in April 2021 with the EBRD, the OPEC Fund, the GCF, AfDB and Arab Bank, the dynamics in global supply chains due to Covid19 altered the dynamics for the development of solar plants.
This resulted in the extension of Kom Ombo’s project execution. The project is expected to contribute to Egypt’s target to generate 42% of the country’s electricity from renewable energy sources by 2035.
