Norwegian independent power producer Scatec Solar ASA (OSL:SSO) announced today it has achieved financial close for the six solar projects totalling 400 MW that it is developing in Egypt with partners.
A consortium of international development finance institutions will cover 75% of the total cost, estimated at USD 450 million (EUR 387m), with a non-recourse project finance package of USD 335 million, the company said in a press statement. The consortium includes the European Bank for Reconstruction and Development (EBRD), the UN's Green Climate Fund (GCF), Dutch development bank FMO, the Islamic Development Bank (IsDB) and the Islamic Corporation for the Development of the Private Sector (ICD).
Scatec Solar is sponsoring the projects alongside Norfund and infrastructure fund Africa50. The three partners will provide 25% equity. In April they signed 25-year power purchase agreements (PPAs) with the Egyptian Electricity Transmission Company for the projects.
Scatec Solar will serve as the turnkey engineering, procurement and construction (EPC) provider and will also deliver operation and maintenance services. Construction is expected to start early next year.
The six projects will form part of the 1.8-GW Benban solar park in Aswan, Upper Egypt. They are also part of the solar feed-in tariff (FiT) programme launched by the government of Egypt in 2015.
(USD 1.0 = EUR 0.860)
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