The African Development Bank’s board of directors has approved US$27.2 million in loan financing for the design, construction and operation of a 200MW photovoltaic (PV) solar power plant located in Kom Ombo on the Nile River in Upper Egypt. The total cost of the project is estimated at 156.4 million U.S. dollars.

In addition to World Bank financing consisting of senior loans, the European Bank for Reconstruction and Development, Green Climate Fund (GCF), Arab Bank and OPEC International Development Fund will also provide funding.

The power plant is located 800 kilometers south of Cairo and is owned by ACWA Power, a leading developer, investor and operator of power generation and desalination hydropower plants in Saudi Arabia.

Kevin Kariuki, the World Bank’s vice president of electricity, energy, climate and green growth, said: “We are very happy to support this project, which will provide one of the lowest electricity prices on the African continent.” He added , The project supports Egypt’s energy transition and contributes to the country’s goal of achieving 20% renewable energy by 2022.

Egypt contributes to energy trade

During the COVID-19 pandemic, Egypt’s economy continued to grow, and its electricity demand grew at an average rate of 7% per year.

By increasing the installed capacity of renewable energy in Egypt, the plant is expected to reduce greenhouse gas emissions by more than 7 million tons of tCO2e equivalent within 25 years. During the construction phase, 800 jobs will be created.

Egypt’s power grid is connected to the power grids of neighboring Libya and Sudan, and the power plant has the potential to make a huge contribution to the region’s energy trade and power supply.

The project is in line with Egypt's national comprehensive sustainable energy strategy and the World Bank's Africa New Energy Plan, which aims to increase the share of renewable energy in Africa's energy sector through innovative financing. The project also advances the agency’s strategic focus of "Lighting and Strengthening the Top 5 African Powers".

Marlene Bloomberg, deputy director general of the World Bank for North Africa, said: "The newly approved transaction is the continuation of the long-term partnership between the World Bank and the Egyptian government and the World Bank's strong support for the country's reform agenda."

In addition to promoting the country’s green development, “The Kom Ombo project has also contributed to the sustainable development of the sector, which is critical to Egypt’s competitiveness and industrial development. More directly, the recovery from COVID-19 will benefit Conducive to an efficient and sustainable energy sector," Blomberg added. Editor/Xu Shengpeng