ACWA Power secures financing for Kom Ombo Solar Power Plant
Sharkawy & Sarhan acted as Egyptian legal adviser to The European Bank for Reconstruction and Development (EBRD), The OPEC Fund for International Development and The African Development Bank (AFDB) in respect to the financing. Latham & Watkins acted as international counsel for the Lenders.
ACWA Power, a renowned Saudi developer, investor, and operator of power generation, water desalination, and green hydrogen plants worldwide, has secured a substantial USD123 million financing package for the development of the Kom Ombo project in Egypt. The utility-scale solar power plant, with a capacity of 200MW, is set to bolster Egypt’s renewable energy sector.
The financing institutions involved in this landmark project include the European Bank for Reconstruction and Development (EBRD), the OPEC Fund for International Development (the OPEC Fund), the African Development Bank (AfDB), the AfDB’s Sustainable Energy Fund for Africa (SEFA), the Green Climate Fund (GCF), Arab Petroleum Investments Corporation (APICORP), and Arab Bank. Their collective support underscores the international recognition and confidence in ACWA Power’s sustainable energy initiatives.
Situated less than 20 km away from the renowned Benban complex, Africa’s largest solar park boasting a capacity of 1,465MW, the Kom Ombo plant is expected to commence commercial operations in January 2024. Once fully operational, it is projected to provide electricity to approximately 130,000 households, contributing significantly to meeting Egypt’s energy demands.
In alignment with the Egyptian government’s renewable energy targets, the Kom Ombo plant will contribute to generating 42 percent of the country’s electricity from renewable sources by 2035. Moreover, it is anticipated to offer one of the lowest generation tariffs in Africa, ensuring sustainable and affordable energy access for the people of Egypt.
Sharkawy & Sarhan Projects & Infrastructure team was led by partner Mohamed Nabil Hazzaa (pictured) and included senior associate Nesma Abdelbary and associate Nadin Ghaleb.