ACWA Power closes financing for Egypt solar projects worth $190m
Of the estimated total cost, 75% will be funded through a non-recourse project debt from European Bank for Reconstruction and Development and Industrial and Commercial Bank of China
ACWA Power has announced that it has reached financial close for three solar photovoltaic (PV) power plants in Egypt under Round 2 of the country’s Feed-in-Tariff (FiT) programme.
The Saudi Arabia-headquartered company revealed in a statement that the three projects have an aggregate capacity of 165.5MWp and are collectively valued at $190m (SAR712.6m).
Of the estimated total cost, 75% will be funded through a non-recourse project debt from European Bank for Reconstruction and Development (EBRD) and Industrial and Commercial Bank of China (ICBC), while the remaining 25% will be financed with equity capital provided by sponsors.
Located in the Aswan province at Benban, the three PV power plants will commence construction in Q1 2018 and is expected to become operational by Q4 2018.
Upon completion, the projects will power 80,000 houses and reduce annual carbon emissions by as much as 141,521 tonnes, ACWA Power added.
Paddy Padmanathan, president and chief executive officer (CEO) of ACWA Power, said: “We are very excited that our first projects in Egypt have not only achieved financial close but are three photovoltaic power plants supporting the Egyptian government in its pursuit of securing 20% of renewable energy in the power generation mix by year 2022.”
Meanwhile, Rajit Nanda, the company’s chief investment officer, commented: “As our first projects, they establish the foundation for many more opportunities that ACWA Power is pursuing with the Ministry of Electricity. ACWA Power identified Egypt as an investment destination worthy of pursuit in 2009 and subsequently established a local company, ACWA Power Egypt, in 2015.”