European Investment Bank (EIB) has selected two developers to project finance under Egypts photovoltaic (PV) solar feed-in tariff scheme.
Frances Engie will carry out two schemes in Benban, with $80m of EIB finance, and Norways Scatec Solar will carry out five in Benban and Zafarana.
African Development Bank (AfDB) plans to project finance six PV solar projects, and will make an approval decision in July.
|Development bank funding for Egypt solar projects|
|AfDB financed projects|
|Enara Sunedison Solar||$130m|
|Shapoorji Pallonji Solar||$108m|
|Gulf New Energy Egypt||$118m|
|EIB financed projects|
|Engie Solar (2x50MW)||$213m|
|Scatec Solar (5x50MW)||$660m|
|Sources: AfDB; EIB|
The Washington-based International Finance Corporation has identified six solar feed-in tariff projects to finance, which include the Delta Solar scheme.
Eurpoean Bank for Reconstruction & Development (EBRD) will fund 10 to 15 projects with a total value of $500m, co-financed with other lenders. It has not published the list of projects, but the majority will be at the Benban site in Upper Egypt.
The US Overseas Private Investment Corporation is also expected to fund some schemes, along with other development banks.
The deadline for financial close is October 2016. After this, Egypts New & Renewable Energy Authority (Nrea) will move the projects onto a new, lower tariff.
The timeline is now very challenging as progress on the schemes has stalled over the power purchase agreements and other project documents.
Development banks and lawyers had previously negotiated the inclusion of a clause allowing international arbitration. This was removed from the most recent version, issued in the second quarter, to the dismay of investors.