Saudi-based alfanar, a leading electrical power company in the region, said one of its subsidiaries Alfa Solar Company, has signed a strategic $57-million loan deal with European Bank for Reconstruction and Development (EBRD) and Islamic Corporation for the Development of the Private Sector (ICD) to fund a 50 MW solar photovoltaic (PV) project in Egypt.

Announcing the deal, alfanar said the EBRD loan will be complemented by a parallel loan of up to $28.5 million provided by the ICD.

The project will be 100 per cent compliant with the country's green economy evolution approach and will support the expansion of renewable energy generation to meet Egypt's targets in this area including its Intended Nationally Determined Contribution.

The project will be among the first utility scale solar project to be implemented in Egypt exploiting the country's significant renewable energy potential.

All of the facilities will be located in the proposed 1.8-GW Benban solar complex in Egypt's Aswan province and will be supported by Egypt's FiT programme for projects of up to 50 MW that is aimed at delivering more than 4 GW of wind and solar power capacity.

This project will offset 900,000 tons of carbon dioxide (CO2) emissions each year, once operational. The power purchase agreement (PPA) for the project was signed by the Project Company with EETC on May 7.

Sabah Mohammed Al Mutlaq, the chairman of Alfa Solar and vice-chairman of alfanar company, said: "The collaboration with EBRD and ICD for financing this project had been a pivotal element in taking the project forward."

"Globally, countries are experiencing the effects of climate change and renewable energy investors and financier's role is vital to cultivate more investment in the region for green energy and scale down the effects of global warming," remarked Al Mutlaq.

"This partnership will assist the socio-economic development in Benban by providing the local population with infrastructure, job creation and skills training," he noted.

"The region has tremendous potential for generating power from the natural resources, and Alfanar will continue to actively consider venturing with EBRD as well as ICD for additional renewable technology projects in solar, wind as well as energy from waste," he added.-TradeArabia News Service