ACWA Power, a developer, owner, and operator of power generation projects, has signed a $123 million financing package to develop a 200 MW Kom Ombo solar project in Egypt.

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

The package comprises loans of up to $36 million from the EBRD, $14.6 million from the OPEC Fund, $14.4 million from the AfDB, $34.5 million from the GCF, $14.8 million from Arab Bank and $ 10 million from the SEFA under the COVID-19 IPP relief program. The project already has equity bridge loans of $14 million from the EBRD and $ 45 million from the Arab Petroleum Investments Corporation (APICORP).

According to Marco Arcelli, CEO of ACWA Power, “ACWA Power’s successful acquisition of financing support for our renewable project is a significant milestone. We’re fully committed to fast-tracking the project’s development while staying true to Egypt’s renewable energy targets.

The Kom Ombo solar project further demonstrates the private sector’s active involvement in Egypt’s energy transition. 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”.

The Kom Ombo project is located less than 20 kilometers from Africa’s biggest solar park, the 1,465 MW Benban complex—another ACWA Power development—and is expected to be commercially operational in January 2024. Once fully functional, the new utility-scale plant will serve 130,000 households.

According to Mercom’s Q1 2023 Solar Funding and M&A report, large-scale project funding came to $5.3 billion in 62 deals, a decrease of 46% compared to $9.8 billion in 52 deals in Q4 2022.