A leading Saudi power player, ACWA Power, has finalised the project agreements for the 200 MW Kom Ombo PV plant in Egypt. It has recently signed the 25-year Power Purchase Agreement (PPA), Network Connection Contract and Usufruct Agreement with the Egyptian government. The Government Guarantee for the said solar PV project had already been signed in January 2021.
ACWA Power is a developer, investor and operator of power generation and desalinated water plants in 13 markets. The company also has an established power project portfolio in Egypt which includes three solar PV projects located in the Aswan province (Benban 1, Benban 2 and Benban 3) with an aggregate capacity of 120 MW, as well as the 2,250MW Dairut-Luxor CCGT IPP in the Luxor Governorate. On completion, the Kom Ombo PV Plant will be one of the largest privately developed utility-scale solar parks in Egypt.
The project is expected to achieve financial closure in the third quarter of 2021. It will obtain a USD 40 million senior debt financing and a USD 14 million equity bridge loan from the European Bank of Reconstruction and Development. In addition, it will also receive a USD 27.2 million loan from the African Development Bank to finance the construction, development, and design of the project. The project construction is expected to begin in the third quarter of 2021.