Egypt’s largest private solar plant, Kom Ombo has received $114 million financing package from the European Bank for Reconstruction and Development (EBRD), the OPEC Fund for International Development (OPEC Fund), the African Development Bank (AfDB), the Green Climate Fund (GCF) and Arab Bank.
The development agreement was witnessed by Minister of International Cooperation, H.E. Dr. Rania A. Al-Mashat, and Minister of Local Development Major General Mahmoud Sharawi, at the Ministry of International Cooperation’s headquarters.
The development of the Kom Ombo solar plant will add 200 MW of energy capacity, increasing the share of renewable energy in Egypt’s energy mix and further promoting private-sector participation in the Egyptian power sector.
The package comprises loans of up to US$ 36 million from the EBRD, US$ 18 million from the OPEC Fund, US$ 17.8 million from the AfDB, US$ 23.8 million from the GCF and US$ 18 million from Arab Bank. This is in addition to equity bridge loans of up to US$ 14 million from EBRD and US$ 33.5 million from Arab Petroleum Investments Corporation (APICORP).
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Backing clean energy collaborations, the Ministry of International Cooperation stated in a statement that it seeks to strengthen international partnerships with multilateral and bilateral development partners, supported by a long-term national strategy that aims to provide green financing that supports the state’s sustainable development agenda.
The Kom Ombo project emphasizes private-sector participation, which was the result of policy dialogue with the Ministry of Electricity and Renewable Energy and the Egyptian Electricity Transmission Company (EETC), as well as a US$ 3.6 million technical assistance programme, co-funded by the EBRD and the GCF, to support the EETC in administering competitive renewable energy tenders.
In 2019, Egypt was reported to have the second-highest renewable energy capacity in Africa, with statistics from the International Renewable Energy Association (IRENA) revealing that power plants and other installations that use renewables generate up to 4,813 MW of electricity per year.
Egypt aims to promote green recovery by allocating 14% of its total public investments in projects that take into account environmental standards, and ensure that 30% of the projects in the fiscal year 2020/2021 meet environmental sustainability standards, with an aim of reaching 100% of the projects in 3 years.
Last year, Egypt became the first Arab country to issue green bonds worth $750 million. These bonds are directed to financing a group of environmentally friendly projects worth $1.9 billion.
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