Saudi Arabian firm, ACWA Power, has achieved financial close for three solar photovoltaic (PV) projects under Round 2 of the Egypt Feed-in-Tariff programme II.
The projects, which are located in the Aswan Province at Benban, will have a respective capacity to generate 67.5MWp, 70MWp, and 28MWp as an individual project.
The total project cost is $190 million of which 75% is financed through a non-recourse project debt from EBRD (European Bank for Reconstruction and Development) and ICBC (Industrial and Commercial Bank of China).
According to the firm, the latter tranch with Multilateral Investment Guarantee Agency cover and the balance 25% of the projects cost financed with equity capital provided by the Sponsors.
The firm noted that the construction of all three projects will commence in Q1 2018.
Adding that once the projects commence operation in Q4 2018, the new installed capacity will power 80,000 houses and provides a saving of 156,000 tonnes of CO2 a year.
Commenting on the financial close of the projects, Paddy Padmanathan, President & 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 suporting the Egyptian Government in its pursuit of securing 20% of renewable energy in the power generation mix by year 2022.” Read more…
Rajit Nanda, Chief Investment Officer of ACWA Power added: “Achieving financial close for these projects is a significant milestone.”
Nanda added: “The successful financial close of these projects is a harbinger of change in the deployment of power generation capacity, and reinforces our belief in the potential that exists in the country.”