The Asian Infrastructure Investment Bank (AIIB) announced that it will provide about $ 210m to finance a renewable energy project in Egypt, including the construction of 11 green field solar power plants with a total capacity of 490 Mw
The project will increase Egypt’s capacity to generate energy and reduce reliance on gas and fuel to generate electricity, which would help in meeting the commitments of the Paris Climate Agreement, according to D.J. Pandian, Vice President and Chief Investment Officer in AIIB, in a statement.
He added that the bank is supporting this project because, it contributes to Egypt’s ability to produce renewable energy, which will help in positioning Egypt as a regional centre for energy production and will have economic benefits for the entire region.
The program will also increase Egypt’s generation capacity so it can export energy during peak hours and improve its connectivity in the Middle East, Asia, Europe, and Africa, according to Pandian.
Egypt’s huge solar resources with its strategic green growth vision, will allow this project to generate global environmental benefits by avoiding Greenhouse Gas (GHG) emissions by more than half a million tons of carbon dioxide (CO2) per year, according to the statement.
The statement said that the International Financial corporation (IFC) would co-finance the project with the AIIB. The project also is attracting additional lenders from the private sector and bilateral financial institutions.
The Beijing-based Asian Infrastructure Investment Bank has 80 member countries, including Egypt and a number of Arab countries, while China holds the largest stake in the bank followed by India, Russia, Germany, and South Korea.
Bank has approved $3.04 bn loans to 28 projects in countries including Azerbaijan, India and Pakistan, since it’s opening in January 2016.