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ACWA Power’s Obtains $123 Million Financing to Develop 200MW Kom Ombo Solar Project

ACWA Power, a leading Saudi developer, investor, and operator of power generation, water desalination and green hydrogen plants worldwide, announced that it has signed a $123 million financing package to develop the 200MW Kom Ombo project, a utility-scale solar power plant in Egypt.

Financing institutions for this project include European Bank for Reconstruction and Development (EBRD), 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).

"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," said Marco Arcelli, CEO of ACWA Power. "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." he added.

The Kom Ombo plant will be located less than 20 kilometres 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. While the financing documentation was originally signed in April 2021 with the EBRD, the OPEC Fund, the Green Climate Fund (GCF), African Development Bank (AfDB) and Arab Bank, the dynamics in global supply chains due to Covid19 altered the dynamics for the development of solar plants. This resulted in the extension for Kom Ombo’s project execution.

Arcelli emphasized that “The new financing package is a result of the confidence that major institutions have in our proven track record of developing large-scale projects. 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.” "We are delighted to reach this important milestone and deepen our partnership with ACWA Power as we promote renewable energy in Egypt, and indeed in Africa. Expanding clean energy generation is central to low-carbon development on the continent and contributes to further reducing carbon emissions and achieving of the goals of Paris Agreement. This is in line with the AfDB’s strategy to promote green growth in Africa. Kom Ombo Solar is also our first collaboration with EBRD, and OPEC Fund in Egypt and we look forward to many more successful partnerships as we seek to enhance more co-financing opportunities across the continent," said Kevin Kariuki, The African Development Bank’s Vice President in charge of Power, Energy, Climate Change and Green Growth.


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