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AfrElec RENEWABLES AfrElec

Egypt approves two soft loans

to boost renewables

EGYPT EGYPT’S House of Representatives has also supporting through a €1mn grant that it will
approved two loan agreements with the Euro- provide over three years.
pean Bank for Reconstruction and Development For Minister Rania Al-Mashat, the EBRD and
(EBRD) and the French Development Agency AFD financing is intended to help Egypt achieve
(AFD). several sustainable development objectives
The €336mn ($390mn) lent by the two banks (SDOs) simultaneously. “These include Goal 7,
is intended to finance renewable energies. which aims to ensure access for all affordable,
Through its €182.9mn ($212mn) agreement, reliable, sustainable and modern energy; Goal 9,
the EBRD is helping to finance a project aimed which aims to promote industry and innovation;
at strengthening Egypt’s electricity network Goal 12, which aims to promote responsible pro-
through the construction of five substations in duction and consumption; and Goal 17, which
the governorates of South Sinai, East Sinai, Port aims to form partnerships to achieve the SDGs,”
Said, Assiut and Minya. Rania Al-Mashat said.
The bank’s package also includes a €150,000 The approvals have come after the EBRD
($174,000) grant for capacity building within the agreed to provide senior debt financing of up
Egyptian Electricity Transmission Co. (EETC). to $40mn and an equity bridge loan of up to
The House also approved a €150mn $14mn to ACWA Power Kom Ombo for Energy
($174mn) loan from AFD. The funds will be to finance the construction and development of
used to implement reforms in Egypt’s electricity a 200-MW utility-scale solar photovoltaic (PV)
sector. project at a total cost of $155.4mn located in
In concrete terms, the aim is to improve Kom Ombo, Egypt.
the sector’s financial viability, management The project is located in vacant arid land 60
and operational efficiency. The programme, km north of Aswan City, adjacent to a 26-MW
launched by the Egyptian government in PV plant developed by the New and Renewa-
2016, also aims to support renewable energy ble Energy Authority. The Kom Ombo plant is
production. located approximately 17 km north of the Ben-
According to the Egyptian Minister of Inter- ban solar complex.
national Cooperation, Rania Al-Mashat, the ACWA Power Kom Ombo for Energy is a
implementation of reforms in the electricity sec- special purpose vehicle incorporated in Egypt
tor and the production of renewable energy will for the sole purpose of constructing and oper-
“launch Egypt’s green transformation.” ating the project, which is ultimately owned by
These initiatives are part of the “national sus- Saudi Arabia’s International Company for Water
tainability programme Vision 2030” that AFD is and Power Projects (ACWA Power).™

P10 www. NEWSBASE .com Week 35 03•September•2020