HomeMiddle East Market ›ACWA Power Secures Financing for 1,100 MW Wind Power Project in Egypt

ACWA Power Secures Financing for 1,100 MW Wind Power Project in Egypt

ACWA Power has finalised financing for a 1,100 MW wind plant in Suez Governorate, Egypt, valued at SAR 4.13 billion. The project, in which ACWA Power holds a 70 percent stake, will be funded by global financial institutions, including EBRD, AFDB, and APICORP, over 20 years.

December 31, 2024. By EI News Network

ACWA Power Co. has secured financing agreements for the development, construction, operation, and maintenance of a 1,100 MW wind power plant in Suez Governorate, Egypt.

The project, valued at SAR 2.64 million, is set to be financed over a 20-year period, with an estimated investment cost of SAR 4.13 billion. ACWA Power holds a 70 percent stake in the project.

A consortium of development financial institutions is providing funding for the principal debt, including the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AFDB), the British International Investment Corporation, the German Investment Corporation, the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation (APICORP). Additionally, Standard Chartered Bank and Arab Bank are financing the principal debt through the 'B' financing structure, facilitated by EBRD.

The financing arrangement includes several guarantees, such as a limited guarantee on ACWA Power's share of the bridge loan, liquidity reserves, and development guarantees. The company confirmed that there are no related parties involved in the deal.

The  wind farm is expected to generate more than 4,300 GWh of electricity annually and reduce annual CO2 emissions by more than 2.2 million tonnes, helping the country to develop an energy sector that is aligned with its commitments under the Paris Agreement.

Rania A. Al-Mashat, Egypt’s Minister of Planning, Economic Development and International Cooperation, and the EBRD Governor for Egypt, said,  “Egypt is committed to advancing its renewable energy ambitions, aiming to derive 42 per cent of its energy mix from renewable sources by 2030, in line with our nationally determined contributions. Through our partnership with the EBRD, a key development partner within the energy sector of Egypt’s country platform for the NWFE programme, we are mobilising blended finance to attract private-sector investments in renewable energy. So far, funding has been secured for projects with a capacity of 4.7 GW, and we are working collaboratively to meet the programme’s targets to reduce Egypt’s fuel consumption and expand clean energy projects.”

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