The European Bank for Reconstruction and Development (EBRD) has agreed to offer $28.5m of loan to Alfanar Energy for a 50MW solar plant in Aswan province in Egypt.
The loan is part of EBRD’s $500m framework for renewable energy in the country, while the Islamic Corporation for the Development of the Private Sector (ICD) agreed to complement an equal amount of $28.5m for the project.
Alfanar Energy is a Saudi Arabia-based construction and electric manufacturing company.
Alfanar CEO Jamal Wadi said: “The collaboration with the EBRD and ICD for financing this project has been a pivotal element in taking the project forward. Globally, countries are experiencing the effects of climate change, and investors and financiers of renewable energy are vital in promoting more investment in the region for green energy and in scaling down the effects of global warming.
“This partnership will assist the socio-economic development of Benban, Egypt, by providing the local population with infrastructure, jobs and skills training. The region has tremendous potential for generating power from natural resources and Alfanar looks forward to working with the EBRD and ICD on future renewables projects in solar, wind and biomass.”
According to EBRD, the projects that are being developed under its Egypt Renewable Energy Framework can sufficiently stimulate the local economy. The solar plant’s construction can also bring in benefits such as transfer of skills and the creation of long-term jobs in the form of operations and maintenance at the facility.
EBRD Power and Energy Utilities director Harry Boyd-Carpenter said: “We are delighted to work with Alfanar Energy and to support them in such an important investment. The EBRD has been a firm supporter of renewable energy development in Egypt, providing policy advice, technical assistance and financing.
“We are very pleased to take another step forward in this area, and to continue our successful cooperation with ICD as well.”
Image: EBRD and ICD to provide $28.5m each for construction of 50MW solar plant in Egypt. Photo: courtesy of European Bank for Reconstruction and Development.