The Dutch Private Sector Finance Fund announces that it has been seized of the possibility of investing in a solar energy project in Egypt. The form of the transaction is a loan, a model that dominates in the financing of renewables in Africa.
The FMO, the Dutch public institution in charge of financing economies in developing countries, is examining the possibility of granting $75 million in financing for the benefit of AMEA Power, a subsidiary of the Dubai family group AI Nowais, learns- on a press release from the institution consulted by the Ecofin Agency.
“FMO will provide a loan under the aegis of the International Finance Corporation, which will be used for the development, financing, construction, operation and maintenance of a 500 MW solar photovoltaic power plant in the governorate of Aswan can we read on the document. The investment presents a solid guarantee for the financing institution.
The project on which the mobilized resources will be deployed benefits from a guarantee from the Egyptian government. Indeed, a purchase contract for the solar energy produced has already been signed and benefits from the support of the Ministry of Finance. According to the journal of private financing transactions for the benefit of African projects updated by the Ecofin Agency, the FMO has since 2017 been involved in around fifty projects relating to energy in Africa.
In total over the period, 268 private financing transactions were recorded for the Energy and Electricity sectors. But almost half of them are loans rather than equity investments. The FMO says it is committed to this new project as part of its strategy to support 100% green energy projects.