The European Bank for Reconstruction and Development (EBRD) said it would provide a $28.5 million loan for the construction of a 50 MW solar plant in Egypt’s Aswan province. Alfanar Energy, a Saudi-based construction and electric manufacturing company will build the plant. Projects developed under the EBRD’s Egypt Renewable Energy Framework will bring a significant stimulus to the local economy, the Bank said.
Following the signing of two projects in August, this is the third project under the EBRD’s framework, which is expected to finance a total of 16 such projects, delivering 750 MW of solar power, the Bank said. The new solar plant is located at the Benban complex in Upper Egypt, which upon completion will be the largest solar installation in the world with a planned total capacity of 1.8 GW.
The EBRD loan will be complemented by a parallel loan of up to $28.5 million from the Islamic Corporation for the Development of the Private Sector (ICD).
EBRD Power and Energy Utilities Director Harry Boyd-Carpenter hailed the investment deal with Alfanar Energy. “The EBRD has been a firm supporter of renewable energy development in Egypt, providing policy advice, technical assistance and financing. We are very pleased to take another step forward in this area, and to continue our successful cooperation with ICD as well,” he said.
For his part, Alfanar Energy CEO Jamal Wadi noted that the collaboration with the EBRD and ICD for financing this project has been a pivotal element in taking the project forward. “This partnership will assist the socio-economic development of Benban, Egypt, by providing the local population with infrastructure, jobs and skills training,” he said.