Cairo – Mubasher: Egypt’s electricity minister Mohammed Shaker and investment minister Sahar Nasr had signed deals with 13 firms to invest $863 million in Aswan’s Benban solar park.
The International Finance Corporation (IFC) will fund about 75.6% of these investments.
Upon these agreements, the IFC will grant Egypt $653 million to support these projects, according to a statement by the Ministry of Investment and International Cooperation (MIIC).
The IFC has formed a consortium of nine firms to invest in this project for the first time, Nasr highlighted.
“It is the largest financing package for a solar photovoltaic facility in the MENA region,” she continued.
This consortium includes the African Development Bank (AFDB), the Asian Infrastructure Investment Bank (AIIB), Arab Bank Bahrain, the UK’s CDC Group, Europe Arab Bank, Finance in Motion, Finnfund, Industrial and Commercial Bank of China (ICBC), and Development Bank of Austria.
Nasr noted that the Multilateral Investment Guarantee Agency has approved to finance 12 projects in Benban with a $210 million grant.
The Nubian Suns Feed-in-Tariff Financing Program is forecasted to benefit about 350,000 people and provide about 6,000 jobs during construction.
Moreover, Shaker revealed that central unit of the Nubian Suns Feed-in-Tariff Financing Program has been established, and about 136 consortiums and a firm were formed in the initial phase.
Shaker added that a 100-megawatt power purchasing agreement has been signed with two firms.
He indicated that the Egyptian government aims at developing a long-term national strategy, which includes boosting renewable energy contribution to reach 42% by 2035.
Commenting on the project, chairman of the IFC Dimitris Tsitsiragos said that these agreements are the IFC’s largest investment in Egypt.
The recent regulations taken by the Egyptian government have allured the private sector and global investment in Egypt, Tsitsiragos added.
On 23 October, the European Bank for Reconstruction and Development (EBRD) announced that it will fund the installation and operation of two 80-megawatt solar power plants in Benan through a joint loan of $87 million.
