The Islamic Corporation for the Development of the Private Sector (ICD) and Alfa Solar Co have signed facility agreements for a $28,5 million Shariah-compliant senior financier to part-fund the development, construction and operation of the Benban solar complex.
Additionally, the pair is partnering with the European Bank for Reconstruction and Development (EBRD), which is providing the project with a matching conventional loan facility.
The project will be located in Aswan province, and is anticipated to be one of the largest solar energy parks in the world, a press release highlighted.
Benban solar complex
The project is expected to abate up to 100,000 tonnes of CO2-equivalent per annum, supporting Egypt’s emission reduction targets under the Paris Climate Agreement, as well as promoting sustainable energy development and private sector participation in the country’s energy landscape. Read more…
Alfa Solar concluded a power purchase agreement with the Egyptian Electricity Transmission Co. (EETC) in May 2017, and is working with ICD and EBRD to achieve financial close by October 2017.
Khaled Mohammed Al-Aboodi, the chief executive officer of ICD, expressed his appreciation for all the effort that was invested to reach this milestone by all the parties involved, and thanked the Egyptian government and its various agencies for their commitment and support for the programme.
Effects of climate change
The Chairman of Alfa Solar and Vice-Chairman of Alfanar Group, Sabah Mohammed Al Mutlaq, said: “Globally, countries are experiencing the effects of climate change and renewable energy investors and financier’s role is vital to cultivate more investment in the region for green energy and scale down the effects of global warming.
“This partnership will assist the socio-economic development in Benban by providing local population with infrastructure, job creation and skills training.”
Mutlaq added: “The region has tremendous potential when generating power from the natural resources, and Alfanar will continue to actively consider venturing with ICD for additional renewable technology projects in solar, wind as well as energy from waste.”
Featured image: Stock