World Bank Group member Multilateral Investment Guarantee Agency (MIGA) has revealed a plan to support the construction, operation and maintenance of six solarpower plants in Egypt, with a combined capacity of up to 250MW.
The financial institution is providing guarantees of up to $102.6m for the plants against the risks of expropriation, transfer restriction and inconvertibility, as well as breach of contract, war and civil disturbance.
MIGA’s board approved a total 12 projects in support of Egypt’s Solar Feed-in Tariff (FiT) programme. Its executive vice-president and CEO Keiko Honda said: “Significant investments are needed in Egypt to meet growing demand for power, and diversify the country’s energy mix.
“We are proud to be supporting Egypt’s ambitious efforts to deliver reliable power to its citizens, while helping tackle climate change.”
Of the total amount, around $5m of coverage has been allotted for equity holder ib vogt of Germany for up to 15 years, while an additional $97.6m cover is being provided for up to 20 years to lender Industrial and Commercial Bank of China (ICBC).
The projects are in line with the government’s target of obtaining 20% of its power generation from renewable energy by 2020.
Under the FiT programme, Egypt aims to attract private sector investment to add up to 4.3GW in solarpower and windpower generation.
Being built with a total cost of $385.8m, the projects have a 25-year power purchasing agreement with the Egyptian Electricity Transmission Company.