The European Bank for Reconstruction and Development (EBRD), the Opec Fund for International Development (the Opec Fund), the African Development Bank (AfDB), the Green Climate Fund (GCF), and Arab Bank newly signed a $114 million funding agreement with ACWA Power to build Egypt's largest private solar project.

The Kom Ombo solar plant would add 200 MW of energy capability, growing the contribution of renewable energy in Egypt's energy mix and encouraging private-sector investment in Egypt's power sector.

The kit includes investments of up to $36 million from the EBRD, $18 million from the Opec Fund, $17.8 million from the AfDB, $23.8 million from the GCF, and $18 million from Arab Bank. That's in addition to equity bridge investments of up to $14 million from the EBRD and $33.5 million from the Arab Petroleum Investments Corporation (APICORP). The new Kom Ombo plant is less than 20 kilometers from Africa's largest solar park, the 1.8 GW Benban complex. Once online, the proposed utility-scale plant will support 130,000 households.

ACWA Power proposed the lowest tariff in Egypt's first solar photovoltaic (PV) tender. The supply of solar energy through a public tendering mechanism seeks to achieve a sustainable tariff and encourage the development of solar energy as an accessible alternative to traditional sources of energy.

Participation in the Kom Ombo project by the private sector is the outcome of fruitful policy discussions with the Ministry of Electricity and Renewable Energy and the Egyptian Electricity Transmission Company (EETC), and a $3.6 million technical assistance scheme co-funded by the EBRD and the GCF to assist the EETC in conducting competitive renewable energy tenders. The project has gained from wider energy-sector changes endorsed by the AfDB in recent years to increase private-sector participation.

“We are pleased to team up again with ACWA Power in Egypt, after our fruitful relationship in Benban, to foster green energy in Egypt,” said EBRD President Odile Renaud Basso. Increasing renewable energy efficiency is a vital step toward reducing carbon emissions and tackling climate change. This is consistent with the EBRD's goal of being a predominantly green bank by 2025. This is also the EBRD's first co-financing initiative in Egypt with the AfDB and the Opec Fund, and are looking forward to furthering mutual funding opportunities for our organizations across Africa.”

“We are delighted to contribute to Egypt's initiatives and strategy to increase its production capacity in the clean energy space. For several years, we have been at the frontline of pushing for sustainable renewable energy access. Kom Ombo will be our third project with ACWA Power, demonstrating excellent collaboration between government, development finance, and private-sector actors. The Kom Ombo solar plant is an extraordinary transaction,” said Opec Fund Director-General Abdulhamid Alkhalifa. It not only clearly shows the undeniable competitiveness of solar PV in comparison to conventional sources of generation, but also actively contributes to the achievement of Egypt's ambitious green energy goals, by being an example of what investors guided by a common goal,” said AfDB Vice President of Power, Energy, Climate Change, and Green Growth.

“ACWA Power is honored and proud to lead the actualization of the Kom Ombo PV project,” said Paddy Padmanathan, President and Chief Executive Officer of ACWA Power. The funding package drawn up brings people closer not only to the Egyptian citizens and government, but also to our finance collaborators, the EBRD, AfDB, the OPEC Fund, the GCF, Arab Bank, and APICORP, representing our common goal of aiding with the energy transformation to counter the challenge of climate change.

Kom Ombo PV is the fourth investment in ACWA Power's Egyptian portfolio, and the completion of this funding shows the Egyptian government's faith in its aggressive clean energy ambitions, which are being pursued with the participation of the private sector. The GCF is proud to promote the introduction of Egypt's innovative clean energy funding system." The Green Climate Fund's Executive Director, Yannick Glemarec, said.

Over $850 million in co-financing is catalyzed by $154.7 million in GCF resources, including $23.8 million for the Kom Ombo facility, launching Egypt's first round of private renewable energy ventures. The GCF looks forward to continuing to assist the Egyptian government in meeting its optimistic climate goals by creative collaborations with the private sector.”

“We are proud to build on our long experience in this field and partner again with EBRD to provide debt funding and related banking services to another green energy project in Egypt for our client ACWA Power,” said Nemeh Sabbagh, CEO of Arab Bank.