Dubai based AMEA Power has raised a $37 million loan package from the African Development Bank Group (AfDB) to finance the construction of its 100 MW Kairouan Solar Power Plant, the '1st' solar independent power producer (IPP) project in Tunisia.
The financing amount includes $20 million in 2 batches of $10 million each from the bank, and $17 million concessional financing from the bank's multi-donor fund Sustainable Energy Fund for Africa (SEFA). AfDB said additional financing will come from the International Finance Corporation (IFC) of the World Bank Group and the Clean Technology Fund (CTF).
According to the bank, this loan will 'likely absorb the COVID-19 related project cost increase and maintain the project economics'.
Located in El Metbassta in Kairouan region, AMEA will design, construct and operate the greenfield project on a build-own-operate (BOO) basis through a special purpose company Société Kairouan Solar Plant S.A.R.L. It is one among 5 awarded by the Tunisian government in 2019 under a competitive auction process (see AMEA & TBEA Win 100 MW Solar In Tunisia).
"The 100 MW Kairouan Solar PV Project will not only be a pioneer for other grid-based solar and wind independent power projects currently under development in Tunisia but also a benchmark for bankability of renewable energy projects in the country as it is underpinned by robust and sustainable agreements negotiated over the last three years under extremely onerous market conditions," said AfDB's Vice President of Power, Energy, Climate and Green Growth, Kevin Kariuki.
Larger solar power plants are also being planned in the African nation of late. In August 2022, Britain TuNur said it plans to invest $1.5 billion for an export oriented solar power plant in Tunisia with 500 MW capacity (see 500 MW Solar Plant Being Planned For Tunisia).
.png?w=50&fm=png){kind=logo}