AfDB considers financing three solar energy projects in Egyp...| MENAFN.COM

Tuesday, 27 September 2022 02:24 GMT

AfDB considers financing three solar energy projects in Egypt for $60m


(MENAFN- Daily News Egypt) The African Development Bank (AfDB) is considering financing three projects within the feed-in tariff programme in Benban, Aswan for $60m.

A source at AfDB told Daily News Egypt that the bank has allocated $18m and $20m worth of finances for each project in the electricity production plant that depends on solar power.

The source said that the bank is considering financing two projects, with one of them being in favor of Shapoorji and the other in favor of Al Cazar.

The source noted that the executive board of AfDB will vote on whether or not they will finance these projects in mid-July.

Sources at Shapoorji told Daily News Egypt that a number of banks agreed to finance a solar energy power plant with 50 MW capacity and investments worth $85m. The financing banks include the International Finance Corporation (IFC) and AfDB.

The sources added that the company is committed to abiding by tariff controls which include financing 70 percent of the project from foreign sources, and 30 percent from local funding sources.

According to the energy purchase agreement, a dispute took place between the Egyptian Electricity Holding Company (EEHC) and investors inside the Cairo Regional Center for International Commercial Arbitration on the possibility of taking arbitration to Paris, France if both sides agreed.

The government launched the feed-in tariff programme for renewable energy in 2014, to establish projects that will produce electricity from solar and wind energy power with capacities of 4,300 MW, with investments worth $7bn. They include 2,300 MW allocated for solar energy projects, including 300 MW for plants of a capacity less than 500 MW, in addition to 2,000 MW for wind plants.

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