The ADB Board of Directors has approved a loan package of $27m and €10m to help co-finance the development of a 100-megawatt solar power plant in Kairouan.

The approval involves $10 million and €10 million from the Bank. As well as $17 million in concessional financing provided through the Sustainable Energy Fund for Africa (SEFA).

Additional financing will be provided by the International Finance Corporation (IFC), a subsidiary of the World Bank Group and the Clean Technology Fund (FTC). The project is being managed by Kairouan Solar Plant SARL, which was created by the Dubai-based AMEA Power.

VP of the ADB in charge of Electricity, Energy, Climate and Green Growth, Kevin Kariuki, said, “The 100mw solar power plant in Kairouan will not only set the bar for other grid-independent solar and wind energy projects currently being developed in Tunisia. It will also serve as a benchmark for the viability of renewable energy projects in the nation.

Given that it is supported by solid and long-lasting agreements. That was negotiated over the course of the last three years under extremely challenging market conditions”

Overview of solar power plant in Kairouan

The project encompasses the design, construction and operation of a 100 megawatt photovoltaic solar power plant. Which is run under a “BOO”-style program (build, own, operate). About 150 kilometers south of Tunis, the project is situated near El Metbassta, in the Kairouan North region. It is one of the government’s five green projects that were awarded in 2019.

Also Read: Tunisia 500MW IPP Solar Power Plants Projects Update

Daniel Schroth, the director of the Bank’s Renewable Energy and Energy Efficiency Department and the person in charge of the SEFA fund, emphasized that SEFA’s concessional terms are likely to absorb the cost increase brought on by Covid-19 and to keep the project economy at a level that is acceptable for reaching financial close.

He said, “The solar power plant in Kairouan demonstrates the SEFA’s catalytic effect. Which assists project promoters in the development of environmentally friendly initiatives that aid in Africa’s energy transition.”