Solar panels- China
CAIRO – 5 September 2017: Egypt signed agreement with the Asian Infrastructure Investment Bank (AIIB) to loan $210 million to the country’s renewable energy sector, the bank announced Tuesday.
A consortium of lenders, including the International Financial Corporation (IFC) is participating in providing the loan, which will finance developing 11 solar plants in Egypt with a total capacity of 490MW, the AIIB said.
The loan will allow Egypt to increase power generation capacity and reduce reliance on gas and fuel, to help meet its commitment under the Paris Climate Agreement.
“We are supporting this project because it contributes to Egypt’s renewable energy capacity, and it will help position the country as a regional energy hub, which will have economic benefits for the entire region,” D.J. Pandian, vice president and chief investment officer of the bank said.
Beijing-based AIIB was founded in December 2015, considering investment in energy, power generation, transportation, rural infrastructure, environmental protection and logistics. The bank has 80 countries as members.
While attending the annual AIIB meeting on South Korea’s island of Jeju, Egyptian Minister of Finance Amr El-Garhy said the AIIB will study funding for new and renewable energy projects in Egypt.
In mid-July, the AIIB was given a Long-Term Issuer Default Rating (IDR) of AAA by Fitch, with a stable outlook, which is the highest credit quality that reflects the lowest risk expectations.