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Sustainable development

African Development Bank Approves $27.2 Million Loan for 200 MW Solar Power Plant in Egypt

Strategic Insights

— 2 min read

The African Development Bank's Board of Directors has approved a $27.2 million loan to finance the design, construction, and operation of a 200 MW photovoltaic solar power plant at Kom Ombo, Upper Egypt. The project aims to reduce electricity costs for businesses and residences, lower greenhouse gas emissions, and create jobs. The total project cost is estimated at $156.4 million, with contributions from the European Bank for Reconstruction and Development, the Green Climate Fund, Arab Bank, and the OPEC Fund for International Development.

Key Takeaways:

  • The project is expected to reduce electricity costs for businesses and residences in Egypt, as well as lower greenhouse gas emissions and create 800 jobs during the construction phase.
  • The project's total cost is estimated at $156.4 million, with the African Development Bank providing $27.2 million in senior loan financing.
  • The plant is owned by ACWA Power, a leading Saudi Arabian developer, investor, and operator of power generation and desalinated-water plants worldwide.
  • The project supports Egypt's energy transition and contributes to the country's goal of achieving a 20% share of renewables in its energy mix by 2022.
  • Egypt's economy has continued to grow during the COVID-19 pandemic, with electricity demands increasing at an average annual rate of 7%.
  • The project is forecast to reduce greenhouse gas emissions by more than 7 million tCO2e equivalent over a 25-year period.
  • The project aligns with Egypt's national Integrated Sustainable Energy Strategy and the African Development Bank's New Deal on Energy for Africa.
  • The project advances the institution's Light Up and Power Africa High-5 strategic priority and supports the country's reform agenda.

Statistics:

  • $27.2 million: The loan amount approved by the African Development Bank Group for the project.
  • $156.4 million: The total estimated cost of the project.
  • 200 MW: The capacity of the solar power plant.
  • 7%: The average annual rate of increase in electricity demands in Egypt.
  • 7 million tCO2e: The forecast reduction in greenhouse gas emissions over a 25-year period.
  • 800 jobs: The number of jobs expected to be created during the construction phase.
  • 20%: The share of renewables in Egypt's energy mix by 2022, as targeted by the country.

Sources:

  • The African Development Bank Group (AfDB)
  • The European Bank for Reconstruction and Development (EBRD)
  • The Green Climate Fund (GCF)
  • Arab Bank
  • The OPEC Fund for International Development (OFID)
  • ACWA Power
  • The African Development Bank Group's New Deal on Energy for Africa (http://bit.ly/3kF5Q97)

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