Written by: Fatma Younis
The European Bank for Reconstruction and Development (EBRD) has successfully arranged a syndicated loan of up to $265 million for the Nafra Minya solar power plant in Egypt. The plant has a capacity of 1.2 GW and includes a 600 MWh battery energy storage system, developed by Infinity Power and Hau Energy in the Minya Governorate.
Project financing package details
This funding represents a portion of a total debt package of $566 million for the project. The loan arranged by the EBRD includes $160 million from the bank's own funds, $75 million as a bridge loan from the Arab Bank, in addition to up to $30 million in concessional financing from the Clean Technology Fund of the Climate Investment Funds. Several international financial institutions are also participating in the financing package, such as the German DEG, the Dutch FMO, and Proparco.
Project objectives and its environmental and economic impact
Electricity produced by the plant is scheduled to be sold to the Egyptian Electricity Transmission Company under a 25-year power purchase agreement. The bank expects the plant to contribute to supplying electricity to more than 1.4 million homes and avoiding the emission of more than 1.5 million tonnes of carbon dioxide annually.
The project is part of the energy pillar of the Egyptian 'NWFE' program to link water, food, and energy. Aida Sitdikova, EBRD Director for Sustainable Infrastructure in the Middle East and Africa, stated that Egypt continues its leadership in deploying large-scale, affordable renewable energy.
In addition, the funding supports green skills training programs for youth in Minya, as well as promoting gender equality and workforce policies. Dalia Wahba, CEO of Hassan Allam Utilities, confirmed that every megawatt-hour produced by the plant contributes directly to reducing reliance on imported fuel.
