In late 2017, we invested $11.6 million in the Phoenix Power plant as part of an initial commitment of $97 million and ultimate investment of $92 million into the Nubian Suns projects.
The project is part of a $653 million debt package, backed by a syndicate of nine international lenders: IFC, Africa Development Bank, Asian Infrastructure Investment Bank, Arab Bank (Bahrain), CDC, Europe Arab Bank, Finance in Motion, FinnFund, ICBC, and Austria’s OeEB.
Our financing will support the construction of nine solar power plants at the Benban Solar Park, contributing to 390MW of capacity.
Estimates suggest that 18 per cent of Egypt’s power capacity is inaccessible due to poor maintenance. In 2014 and 2015, the state diverted nearly all fuel to electricity generation to meet peak summer power demand supplying to household consumers at the expense of heavy industry. These power shortages severely limit the country’s economic potential.
Our investment will generate 390MW of solar power and support 3,000 jobs during the construction phase.
The project is located in Upper Egypt which suffers from the highest rates of unemployment and poverty in the country. It is expected to provide clean, cost-effective power to over 350,000 residential customers.
The Egyptian government foresees 20 per cent of its power production originating from renewable sources by 2022.
A large portion will be in the form of solar projects but wind is projected to play an increasing role over the next five years. The promotion of renewable energy will help to develop another local source of energy supply, reducing the country’s import fuel bill, as well as meeting increased demand.
Environmental and social aspects
CDC and the IFC have worked with the developer and other lenders to mitigate environmental and social (E&S) risks including health and safety, labour, and construction practices, as well as transport and traffic management.
This will help Egyptian regulators and the projects’ facilities team to build and deliver international best practice standards across the development of 41 co-located solar plants. CDC is financing nine of these plants.
- Africa, North Africa
- Investment type
- Direct Debt
- Start date
For direct investments, this is the date CDC committed capital to the business or project.
For funds, this is the date that CDC committed capital to the fund.
For underlying fund investments, this is the date that the fund invested capital into the business.e
- October 2017
For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).
For funds, this is the total amount that CDC has committed to the fund.
This is the investee company’s place of incorporation; or a fund’s jurisdiction.