AfDB Approves $27.2M Loan towards the Establishment of Kom Ombo solar Power Plant

The Board of African Development Bank (AfDB) has approved $27.2 million in loan financing for the design, construction and operation of the Kom Ombo solar Power Plant, a 200 MW photovoltaic solar power plant located at Kom Ombo, Egypt.

A statement that was obtained by Business Elites Africa explained that upon completion, the project will  help lower electricity costs for businesses and residents, as well as reduce greenhouse gas emissions. It will also create thousands of jobs for construction workers and engineers in the meantime.

The total cost for the design and construction of the Kom Ombo solar Power Plant has been estimated at $156.4 million. Note that in addition to the funding provided by the AfDB which is structured as a senior loan, the following organisations also provided additional funding:

• The European Bank for Reconstruction and Development
• The Green Climate Fund (GCF),
• Arab Bank and the OPEC Fund for International Development.

The plant is owned by ACWA Power, a leading Saudi Arabian development and investment company that specialises in the construction and operation of power generation and desalinated-water plants worldwide.

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Commenting on the development, kevin Kariuki who serves as AfDB’s Vice President for Power, Energy, Climate and Green Growth, said: “We are delighted to support this project that will deliver one of the lowest generation tariffs on the continent. The project supports Egypt’s energy transition and contributes towards the country’s achievement of its targeted 20% share of renewables by 2022.”

AfDB’s Deputy Director General for North Africa, Malinne Blomberg said that “the newly approved transaction is a continuation of the Bank’s long-standing partnership with the Government of Egypt and its strong support for the country’s reform agenda. The Kom Ombo project is also contributing to the sustainability of a sector that is essential for Egypt’s competitiveness and industrial development. More immediately, the recovery from COVID-19 will benefit from an efficient and sustainable energy sector.”

Note that Egypt is among the founding members of the African Development Bank Group. Since 1974 when it began lending, the AfDB has financed more than 100 operations in Egypt, according to checks by Business Elites Africa.