AfrElec: Dubai’s AMEA Power reaches financial close on two 500-MW renewable energy projects in Egypt

Dubai-based developer, owner and operator of renewable energy projects AMEA Power has reached financial close to deliver two renewable energy projects in Egypt with a total of 1GW electricity generation capacity.

AMEA Power will develop, own and operate the 500-MW solar PV plant located in Aswan governorate. The project is being financed by International Finance Corporation (IFC), the private sector arm of the World Bank Group; Dutch Entrepreneurial Development Bank (FMO); and the Japan International Cooperation Agency (JICA).

It will also develop a 500-MW wind farm located in the Red Sea governorate in partnership with Japan’s Sumitomo Corporation, which will own 40% equity in the project. Financing is being provided by a consortium of banks, including Japan Bank for International Cooperation (JBIC) and IFC, together with Standard Chartered Bank, Commercial International Bank, Sumitomo Mitsui Banking Corporation, and Sumitomo Mitsui Trust Bank participating as co-lenders under Nippon Export and Investment Insurance (NEXI) cover.

Both projects have already secured power purchase agreements (PPAs) with the Egyptian Electricity Transmission Company (EETC) and usufruct agreements with the New and Renewable Energy Authority (NREA). Moreover, the project benefits from a sovereign guarantee issued by the Ministry of Finance to fulfil EETC’s uptake commitments.