The African Development Bank (AfDB)’s Board of directors have approved US$ 27.2M in loan financing for the design, construction, and operation of a 200MW photovoltaic (PV) solar power plant at Kom Ombo, approximately 800km south of Cairo in the Upper region of Egypt.
Owned by ACWA Power, a leading Saudi Arabian developer, investor, co-owner, and operator of a portfolio of power generation, renewable energy, and desalinated water production plants worldwide, the project’s total cost is estimated at US$ 156.4M.
The European Bank for Reconstruction and Development (EBRD), the Green Climate Fund (GCF), the Arab Bank, and the OPEC Fund for International Development will also contribute funding in addition to the AfDB’s financing that is structured as a senior loan.
Expectations for the project
The project in question is expected to lower the electricity costs for businesses and residences, as well as reducing greenhouse gas emissions, and creating construction and other jobs.
Kevin Kariuki, the AfDB’s vice president for power, energy, climate, and green growth said that the multilateral development finance institution is delighted to support the 200MW photovoltaic (PV) solar power plant at Kom Ombo “that will deliver one of the lowest generation tariffs on the continent,” adding that “the project supports the North Africa Country’s energy transition and contributes towards the achievement of its targeted 20% share of renewables by 2022.”
The project is also expected to reduce greenhouse gas emissions by more than 7 million tonnes over a 25-year period.