The Asian Infrastructure Investment Bank (AIIB) has announced that it will provide up to $210 million in debt financing towards a renewable energy project in Egypt, which includes the building of 11 greenfield solar power plants with an aggregate capacity of 490 MW.

The solar power project will increase Egypt’s power generation capacity, reduce the country’s dependence on gas and fuel for electricity generation, and will help the country meet its commitments under the Paris Climate Agreement as it moves towards an environmentally sustainable energy mix, said a statement.

Egypt’s huge solar resources, together with its strategic vision for green growth, will allow this project to generate global environmental benefits by avoiding greenhouse gas (GHG) emissions of more than half a million tons of CO2 per year, it said.

A syndicate of lenders including the bank will provide long-term debt financing on a limited recourse project finance basis, it added.

D J Pandian, vice president and chief investment officer, AIIB, said: “Investing in clean, renewable energy is a big part of our strategy to promote a sustainable and low-carbon future for Asia.”

“We are supporting this project because it contributes to Egypt’s renewable energy capacity, and it will help position the country as a regional energy hub, which will have economic benefits for the entire region,” he said.

The programme will increase Egypt’s generation capacity so it can export energy during peak hours and improve its connectivity in the Middle East, Asia, Europe and Africa, said a statement.

The project will be co-financed by AIIB and the International Financial Corporation (IFC), and is attracting additional lenders from the private sector and bilateral financial institutions, it stated. – TradeArabia News Service