ALFANAR closes financing for landmark 50 MW Solar PV IPP project in Egypt
Baku, Azerbaijan, Nov. 7
Alfanar Company closes last week the financing for the development, construction, ownership and operation of a 50 MW solar PV plant which will be located in the proposed 1.8-GW Benban solar complex in Egypt's Aswan province and which will be supported by Egypt's FiT program.
This project will be the first in the row of alfanar current pipeline of 800 MW investment projects spread across Europe, East Africa and South Asia in both solar and wind technologies.
Alfa Solar Company - subsidiary of alfanar group - has signed the facility agreement for $57 million with the European Bank for Reconstruction and Development (EBRD) and Islamic Corporation for the Development of the Private Sector (ICD) in early October 2017.
Mr. Sabah Mohammed Al Mutlaq, Chairman of Alfa Solar and Vice-chairman of Alfanar group, stated: "We are happy to achieve this milestone. We appreciate the trust placed on us by EETC/EBRD/ICD and look forward to delivering the plant in time".
Mr. Jamal Wadi, CEO - Alfanar Energy, said: "It is to the credit of EETC and the various counterparties that we could achieve the financial close in appropriate time. These projects are sort of a testimony to the changing standard in the energy field and can deliver equal if not higher dependable and long term value to countries and developers.
Mr. Khaled Al-Aboodi, CEO of ICD, added: “ICD is engaged with the financing of this solar project in Egypt as a proof of its commitment to encourage the renewable energy in the member countries. ICD stands ready to work with Alfanar and other investors on further improvements in the business climate for renewable energy, especially under the Government of Egypt‘s feed-in-tariff (FiT) renewable energy program.”
Mr. Harry Boyd-Carpenter, EBRD Director, Power and Energy Utilities, commented: “We are delighted to work with Alfanar and to support them in such an important investment. The EBRD has been a firm supporter of renewable energy development in Egypt, providing policy advice, technical assistance and financing. We are very pleased to take another step forward in this area, and to continue our successful cooperation with ICD as well.”
The Power Purchase Agreement (“PPA”) for the project was signed with EETC on May 7th 2017. Project will be 100% 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 and will offset 900,000 tons of carbon dioxide (CO2) emissions each year, once operational.
With the launch of this landmark project, Alfanar group is setting pace to deliver newly won renewable projects in Spain (720 MW Wind project), India (50 MW Wind Project) & Kenya (40 MW Solar PV project).
Alfanar Company established in 1976 and currently is the region's leading player in the Energy sector, its manpower constitutes to 17,000 plus with more than 2,000 engineers, and turnover exceeds $2.15 billion (2016). alfanar Group, activity portfolio covers Integrated Development, Financing, Engineering, Construction, Testing & Commissioning, Technical services, Civil works, MEP works, Operation and Maintenance for Power and Water projects and manufacturing of power electrical equipment with research and development centers globally. As a Saudi based company, alfanar has many companies in Portugal, UAE, Egypt, Qatar, UK, India and Spain.
ICD is a multilateral organization and a member of the Islamic Development Bank (IDB) Group. The mandate of ICD is to support economic development and promote the development of the private sector in its member countries through providing financing facilities and/or investments, which are in accordance with the principles of Sharia’a. ICD also provides advice to governments and private organizations to encourage the establishment, expansion and modernization of private enterprises. ICD is rated AA/F1+ by Fitch and Aa3/P1 by Moody’s.