The Board of Directors of the African Development Bank Group approved a loan package of $27 million and €10 million to co-finance the construction of a 100-megawatt solar power plant in Kairouan, Tunisia.
The Board’s approval covers $10 million and another €10 million from the Bank, and $17 million of concessional financing from the Sustainable Energy Fund for Africa (SEFA), a special multi-donor fund administered by the Bank. Additional financing will come from the World Bank Group’s International Finance Corporation (IFC) and the Clean Technology Fund (CTF).
The project includes the design, construction and operation of a greenfield photovoltaic (PV) solar plant with a capacity of 100 megawatts under a Build, Own and Operate (BOO) scheme. The project is located in El Metbassta, northern Kairouan region, about 150 km south of the Tunisian capital, Tunis. It is one of the five renewable projects awarded in 2019 by the government.
Société Kairouan Solar Plant SARL, developed by Dubai-based AMEA Power, will manage the project.
“The Kairouan 100-megawatt solar PV project will not only be a pioneer for other stand-alone grid-based solar and wind projects currently being developed in Tunisia, but also a benchmark for project bankability. of renewable energy in the country, as it is backed by strong and sustainable deals negotiated over the last three years under extremely onerous market conditions,” said Dr. Kevin Kariuki, Vice President of Energy, Climate and Green Growth at the African Development Bank. .
“We are delighted to support the first IPP solar project in Tunisia,” said Mr. Wale Shonibare, Director of Energy Finance Solutions, Policy and Regulation at the African Development Bank. He added: “The success of the transaction, which has achieved the highest bankability standards after months of negotiations with the Tunisian authorities, provides a useful template for future projects that will help move the country closer to achieving the energy goal. clean from 35% of the government. “
Dr. Daniel Schroth, the Bank’s Director of Renewable Energy and Energy Efficiency in charge of SEFA, noted that SEFA’s concessional terms under the program will likely absorb the increased project costs related to Covid-19 and maintain the economy. of the project at acceptable levels to achieve financial results. To close. “The Kairouan solar project epitomizes SEFA’s catalytic effect in supporting developers to deliver sustainable renewable projects that help Africa’s energy transition,” he said.
The Kairouan Solar project aligns with Tunisia’s Nationally Determined Contribution and the goal of reducing carbon emissions through the transition to renewable energy sources. It is also consistent with the African Development Bank’s New Deal on Energy for Africa and the High-5 strategic priority “Light up and Power Africa”.
About SEFA
SEFA is a special multi-donor fund that aims to unlock private sector investments to provide universal access to affordable, reliable, sustainable and modern energy services for all in Africa in line with the New Deal on Energy for Africa strategy and the Bank’s Sustainable Development Goal. 7.
About AMEA Energy
AMEA Power was founded in 2016 and is headquartered in Dubai, United Arab Emirates. The company develops, finances, builds, owns and operates renewable energy plants in Africa, the Middle East and Asia. The company has approximately 70 employees. Current operations are within the space onshore wind, solar, battery storage, green hydrogen, and water desalination. AMEA is a strategic client of the Bank, as is fostered by the close collaboration between both institutions.
