January 8 (Renewables Now) - Saudi company ACWA Power today said it has reached financial close for three solar photovoltaic (PV) projects totalling 165.5 MWp in Egypt.
The projects, secured under round 2 of Egypt's feed-in-tariff (FiT) programme, are located at Benban, Aswan province. They are of 67.5 MWp, 70 MWp and 28 MWp in size, and are expected to cost a total of USD 190 million (EUR 158m). A portion of 75% of the investment is financed through a non-recourse project debt from the European Bank for Reconstruction and Development (EBRD) and the Industrial and Commercial Bank of China (ICBC). The other 25% is equity.
ACWA Power will finance, build, own and operate the three systems, its first projects in Egypt. It is partnering with China's Chint group and Egyptian companies Tawakol and Hassan Allam Holding. The Saudi company signed a power purchase agreement (PPA) for the projects with the Egyptian government in August last year.
Construction on the three schemes will begin in the first quarter of 2018, with start-up scheduled for the final quarter of the year.
Under its FiT programme Egypt aims to add around 4 GW of solar and wind capacity as part of an objective to have 20% its electricity come from renewables by 2022.
(USD 1 = EUR 0.833)