The Asian Infrastructure Investment Bank (AIIB) is set to provide $210m in debt financing to support development of 11 solarpower projects in Egypt with a total capacity of 490MW.

The plants are expected to increase Egypt’s power generation capacity, reducing its reliance on gas and fuel sources for electricity generation.

In addition proposed plants are expected to help the country meet commitments made under the Paris Climate Agreement.

Egypt aims to export energy during peak hours and improve its connectivity in the Middle East, Asia, Europe, and Africa.

"Investing in clean, renewable energy is a big part of our strategy to promote a sustainable and low-carbon future for Asia."

AIIB vice-president and chief investment officer D J Pandian said: “Investing in clean, renewable energy is a big part of our strategy to promote a sustainable and low-carbon future for Asia.

“We are supporting this project because it contributes to Egypt’s renewable energy capacity, and it will help position the country as a regional energy hub, which will have economic benefits for the entire region.”

The newly announced long-term debt financing will be provided by a group of lenders including AIIB and International Financial Corporation (IFC) on a limited recourse project finance basis. Lenders from private sector and bilateral financial institutions will also take part.