An IFC-led consortium is set to provide a $653m debt package to support the development of 13 solarpower plants to be built near Aswan, Egypt.
Called Nubian Suns Feed-in-Tariff Financing Program, the package is expected to be provided to a group of six private power companies, which will build and operate the plants.
When completed, the facilities will be able to generate up to 752MW of power and will become part of the 32-plant Benban Solar Park, which is expected to support Egypt’s Feed-in-Tariff programme that leverages private sector capital and expertise to support the country’s goal of producing 20% of electricity from renewable sources by 2022.
During construction, the plants are expected to create up to 6,000 jobs. Once complete, more than 350,000 Egyptian households will be able to receive clean electricity.
IFC CEO Philippe Le Houérou said: “Egypt’s reforms in its energy sector have opened the door to private sector investments.
“For the Benban Solar Park project, those reforms and our innovative financial tools have helped attract a number of investors and financiers into the country for the first time.
“This will create jobs for many Egyptians and provide clean and reliable energy for people across the country.”
The IFC-led consortium includes nine international banks comprising the Africa Development Bank, Asian Infrastructure Investment Bank, Arab Bank of Bahrain, The UK’s CDC, Europe Arab Bank, Finance in Motion, FinnFund, ICBC, and OeEB of Austria.