World Bank Group member Multilateral Investment Guarantee Agency (MIGA) isto provide US$102.6 million in financing for six PV projects in Egypt.
The six PV installations will have a combined generation capacity of 250MW and represent the first set of a total 12 projects approved by MIGA’s board in support of Egypt’s Solar Feed in Tariff (FiT) program.
US$5 million of the financing is being provided for equity holder ib vogt GmbH of Germany for up to 15 years. An additional US$97.6 million is being provided for up to 20 years to lender Industrial and Commercial Bank of China (ICBC) of People’s Republic of China (PRC), bolstering the longer-term strength of the projects against fluctuating tariffs.
MIGA executive vice president and CEO Keiko Honda said: “Significant investments are needed in Egypt to meet growing demand for power, and diversify the country’s energy mix. We are proud to be supporting Egypt’s ambitious efforts to deliver reliable power to its citizens, while helping tackle climate change.”
The projects will contribute to the government’s target of having renewable energy make up 20% of power generation by 2020, and also the FiT program, which seeks to attract private sector investment for up to 4.3GW in solar and wind power generation.
Energy from the power plants will be sold to the Egyptian Electricity Transmission Company under a 25-year Power Purchasing Agreement, which is backstopped by a guarantee from Egypt’s Ministry of Finance.
Once the six plants are operational, they will have enough capacity to provide power to the equivalent of 349,912 additional residential homes.