The Asian Infrastructure Investment Bank has invested $210 million in debt financing to tap Egypt’s renewable energy potential.
The solar power project will increase Egypt’s power generation capacity, reduce the country’s dependence on gas and fuel for electricity generation, and will help the country meet its commitments under the Paris Climate Agreement as it moves towards an environmentally sustainable energy mix.
The project will consist of 11 greenfield solar power plants with an aggregate capacity of 490 megawatts. Egypt’s huge solar resources, together with its strategic vision for green growth, will allow this project to generate global environmental benefits by avoiding Greenhouse Gas emissions of more than half a million tons of CO2 per year. A syndicate of lenders including the Bank will provide long-term debt financing on a limited recourse project finance basis.
The program will increase Egypt’s generation capacity so it can export energy during peak hours and improve its connectivity in the Middle East, Asia, Europe and Africa. The project will be co-financed by AIIB and the International Financial Corp., and is attracting additional lenders from the private sector and bilateral financial institutions.
