The African Development Bank (AfDB) has approved a loan of US$27.2M for the development and operation of a 200 MW solar photovoltaic plant in Kom Ombo, Egypt.
The project will cost a total of US$156.4M and will be developed by Saudi energy firm ACWA Power. The electricity produced from the plant will be sold to the Egyptian Electricity Transmission Company under a 20-year power purchase agreement. The project is expected to create approximately 800 jobs.
“We are delighted to support this project which will offer one of the lowest generation tariffs on the continent,” said Kevin Kariuki, Vice President for Power, Energy, Climate and Green Growth, AfDB. “The project supports Egypt’s energy transition and contributes to achieving its ambition of 20% renewable energy by 2022.”
The European Bank for Reconstruction and Development, the Green Climate Fund, the Arab Bank and the Organization of the Petroleum Exporting Countries Fund for International Development will also contribute to the funding of the project.