The European Bank for Reconstruction and Development (EBRD) is providing a US$28.5 million loan for a 50MW solar project in Egypt’s Aswan Province, which is being constructed by Saudi-based firm Alfanar Energy.
The project will also be supported by a loan of up to US$28.5 million from multilateral financing organisation Islamic Corporation for the Development of the Private Sector (ICD).
Alfanar signed a PPA with the Egyptian Electricity Transmission Company (EETC) back in May.
The financing is part of EBRD’s US$500 million framework for supporting 750MW of solar projects in Egypt, which it announced in June.
Financing for two such projects was sealed last month, so this is the third project under the EBRD’s framework, which is expected to finance a total of 16 projects.
The project will be located in the Benban Solar Park, which will have a capacity of 1.8GW once complete.
Harry Boyd-Carpenter, EBRD director, power and energy utilities, said: “We are delighted to work with Alfanar Energy and to support them in such an important investment. The EBRD has been a firm supporter of renewable energy development in Egypt, providing policy advice, technical assistance and financing.”
Jamal Wadi, chief executive of Alfanar Energy, said: “The collaboration with the EBRD and ICD for financing this project has been a pivotal element in taking the project forward. This partnership will assist the socio-economic development of Benban, Egypt, by providing the local population with infrastructure, jobs and skills training. The region has tremendous potential for generating power from natural resources and Alfanar looks forward to working with the EBRD and ICD on future renewables projects in solar, wind and biomass.”