The board of the African Development Bank Group (AfDB) recently approved a US$27 million and €10 million loan package to co-finance the construction of the 100MW Kairouan Solar Power Plant in Tunisia, a country in North Africa.
This board approval includes $10 million and an additional €10 million from the AfDB, as well as $17 million in concessional funding from the Sustainable Energy Fund for Africa (SEFA), a dedicated multi-donor fund managed by the AfDB will. Additional funding comes from the International Finance Corporation (IFC) of the World Bank Group and the Clean Technology Fund (CTF).
This 100MW project in El Metbassta, Kairouan North Region, will be developed using the Build-Own-Operate (BOO) approach. It is one of five renewable projects awarded by the Tunisian government in 2019.
The 100-megawatt Kairouan solar PV project will not only be a pioneer for other grid-based solar and wind energy projects currently being developed in Tunisia, but also a benchmark for the bankability of renewable energy projects in the country as it passes through Robustness and sustainability are underpinned by agreements negotiated under extremely difficult market conditions over the past three years.
– said dr. Kevin Kariuki, Vice President of Power, Energy, Climate and Green Growth at AfDB.
Dubai-based AMEA Power will lead the Kairouan solar project. It is a strategic customer of the AfDB, which is encouraged by the close cooperation between both parties.
According to analysts at AfDB, after months of negotiations with Tunisian authorities, this financing has reached the highest bankability standards, provides a helpful framework for future solar projects in Tunisia and accelerates the country’s progress towards the 35% clean energy target.
The Kairouan project is in line with Tunisia’s nationally determined contribution and target to reduce CO2 emissions through the transition to renewable energy sources. It is also in line with the AfDB’s New Deal on Energy for Africa and the High-5 strategic priority “Light up and Power Africa”.