Saudi developer ACWA Power reached financial close for the development, construction and operation of three photovoltaic projects worth $190 million and set for peak total output of 165.5 megawatts at the Benban complex in Upper Egypt's Aswan, the company announced in a press release Monday.
Out of the $190 million, 75% will be financed through a non-recourse project debt from the European Bank for Reconstruction and Development and the Industrial and Commercial Bank of China.
The Multilateral Investment Guarantee Agency is covering the remaining 25% of the project’s cost which is financed with equity capital.
Construction of the three power plants will begin in Q1 2018 and the projects will be operational by Q4 2018.
“We are very excited that our first projects in Egypt have not only achieved financial close but are three photovoltaic power plants supporting the Egyptian government in its pursuit of securing 20% of renewable energy in the power generation mix by year 2022,” Paddy Padmanathan, president & CEO of ACWA Power said.
The projects will power 80,000 houses and will save 156,000 tons of CO2 per year, the company said.
“ACWA Power is partnering with the Chinese group Chint and the Egyptian groups Tawakol and Hassan Allam Holding, two of the most reputable local companies in Egypt on the project, highlighting the company’s commitment and belief in the Egyptian Market,” the press release read.
ACWA Power is also contracted for other energy development projects in Egypt, including the Dairut 2250 MW combined-cycle gas turbine power plant, and a series of more than 500 MW wind projects and 1 GW of photovoltaic projects.