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Wednesday, September 28, 2022

Egypt: Acwa Power Secures $114 million in Project Funding

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Saudi Arabian Independent Power Producer, Acwa Power, has secured $114 million from multiple financing institutions for the development of its Kom Ombo solar power plant in Egypt.  

In addition to the $14 million bridge loan from the European Bank for Reconstruction and Development (EBRD) and $33.5 million from the Arab Petroleum Investments Corporation (APICORP), Acwa Power announced that the $114 financing will comprise $36 million from EBRD; $18 million from the OPEC Fund for International Development; $17.8 million from the African Development Bank (AfDB); $23.8 million from the Green Climate Fund (GCF); and $18 million from the Arab International investment Bank.

Development of the 200MW solar photovoltaic (PV) project, located in southern Egypt, was finalised by Egyptian authorities through a 25 year power purchase agreement with the Egyptian Electricity Transmission Company. According to Acwa Power, once operational, the project is expected to significantly increase the country’s power generation capacity, while expanding renewable energy penetration in the market by serving 130,000 households.  

“We are very happy to team up again with Acwa Power, after our successful partnership in Benban, to promote renewable energy in Egypt. Increasing the production of clean energy is an important step to reducing carbon emissions and addressing climate change. This is in line with the EBRD’s strategy to become a majority green bank by 2025. This project also marks the EBRD’s first co-financing project with the AfDB and the OPEC Fund in Egypt and we look forward to future joint investment opportunities for our institutions across Africa,” Odile Renaud basso said in a statement

“Acwa Power is privileged and proud to lead the realisation of the Kom Ombo PV Project. The financing package signed today brings us closer to not only the people and the government of Egypt, but also to our finance partners, the EBRD, AfDB, the OPEC Fund, the GCF, Arab Bank, and APICORP. Kom Ombo PV is the fourth project in Acwa Power’s Egyptian portfolio and the conclusion of this financing demonstrated the confidence in the Egyptian government’s ambitious renewable energy plans, being implemented through private-sector participation,” stated Paddy Padmanathan, President and CEO, Acwa Power.  

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