Two international financing agencies have come forward to support solar power project development in Egypt. Asian Infrastructure Investment Bank (AIIB) has announced up to $210 million in financing for 11 greenfield solar power plants representing an aggregate capacity of 490 MW. The other international agency is the African Development Bank (AfDB), which has approved $55 million loan for three solar PV projects in Egypt with a cumulative capacity of 150 MW. All projects are located in Benban Solar Park.
A syndicate of lenders including AIIB will provide long-term debt financing on a limited recourse project finance basis for 490 MW. It will be co-financed by AIIB and the International Finance Corporation (IFC). More investors from the private sector and bilateral financial institutions are also interested in participating in the project, said AIIB.
Alcazar Energy Egypt Solar I (Alcazar I) Delta for Renewable Energy (Delta) will each get a loan of $18 million, while another independent power producer Shapoorji Pallonji Energy Egypt (SP) (SPEE) will get $19 million. The amount approved for SPEE includes $7 million concessional financing from the Global Environment Fund (GEF). All these loans from AfDB will have a tenor of 18 years.