ACWA Power- Saudi Arabia’s leading energy company has reportedly received a USD 114 million financing package to develop the proposed 200 MW Kom Ombo solar scheme in Egypt from four agencies.
Notably, the EBRD- European Bank for Reconstruction and Development, Green Climate Fund, African Development Bank, OPEC Fund for International Development- OPEC Fund, and the Arab Bank have inked a deal with the ACWA Power to construct one of the largest private solar project in Egypt.
Citing reliable sources, in November 2019, ACWA had signed a power purchase deal with the government of Egypt to develop, construct, operate, and finance the 200 MW Kom Ombo solar plant. ACWA Power gained this project through a tender issued in August 2018.
It is worth mentioning that the development of the solar plant will increase the share of Egypt’s share of renewable energy as well as encourage the participation of the private sector in the Egyptian power industry.
Sources close to the news claim that the package consists of loans of nearly USD 36 million from the EBRD, USD 17.8 million from the African Development Bank, USD 18 million from the OPEC Fund, USD 18 million from the Arab Bank, and USD 23.8 from the Green Climate Fund.
This is in addition to the equity bridge loans of approximately USD 33.5 million from the Arab Petroleum Investments Corporation, and USD 14 million from EBRD.
Seemingly, the Kom Ombo scheme is expected to be located within 20 km from Africa’s largest solar park, the 1.8 GW Benban complex. Post operation, the new plant is slated to serve nearly 130,000 households.
As per reports, ACWA Power furnished the lowest tariff in the first solar PV tender in Egypt. This tender process focused on achieving a competitive tariff as well as encourage the growth of solar energy as a cost-effective alternative to traditional sources of energy.