Riyadh – Mubasher: ACWA Power Company has signed a $123 million financing package to develop the utility-scale solar power plant Kom Ombo in Egypt, according to a press release.

The financing institutions for the project include European Bank for Reconstruction and Development (EBRD), OPEC Fund for International Development,  African Development Bank (AfDB), AfDB’s Sustainable Energy Fund for Africa (SEFA), Green Climate Fund (GCF), Arab Petroleum Investments Corporation (APICORP), and Arab Bank.

EBRD granted a $36 million loan, while the OPEC Fund and AfDB endorsed the project with $14.60 million and $14.40 million, respectively.

The GCF and Arab Bank allocated $34.50 million and $14.80 million, respectively, for the 200-megawatt (MW) facility. Meanwhile, the SEFA announced $10 million financing under the COVID-19 IPP relief programme.

ACWA Power highlighted that the project has equity bridge loans of $14 million from the EBRD and $45 million from the APICORP.

The Kom Ombo plant, which will be located less than 20 kilometres from the 1,465 MW Benban complex, is expected to start commercial operation in January 2024. Once fully functional, the new utility-scale plant will serve 130,000 households.

Moreover, it will contribute to the Egyptian government’s target to generate 42% of the country’s electricity from renewable energy sources by 2035. This is in addition to delivering one of the lowest generation tariffs in Africa.

Marco Arcelli, CEO of ACWA Power, said: "This accomplishment highlights the shared vision and purpose of various global financing institutions in achieving the Republic’s targets, which would not be possible without the trust and support of the government, the Egyptian people, and communities."

Arcelli added: “With this funding, we are fully committed to working collaboratively with our partners in the public and private sectors to ensure that this project delivers a strong and sustainable outcome for all involved.”

It is worth noting that Emirates Water and Electricity Company (EWEC) recently granted ACWA Power a commercial operation certificate for Group 2 of Taweelah RO Desalination Company in Abu Dhabi.