Receiving the award at a ceremony in Mauritius, Terje Pilskog Scatec Solar’s EVP, Business Development said ‘’This deal showcases our strong partnerships with leading financing institutions and our expertise in putting together complex deals in emerging markets. Our team has done a tremendous job and demonstrated creativity and persistence in reaching this milestone. ’’
While giving the award, the judges examined not only the structuring and financial dimensions of the deal, but also the financial innovation, the use of local human and capital resources, the positive social, environmental and economic impact on the local community, consultation with key stakeholders as well as the sustainability footprint of the projects.
For the six Egyptian projects involving a total investment of USD 450 million, a consortium of international Development Finance Institutions is providing a non-recourse project finance of USD 335 million, which is 75% of the capex. Equity will be provided by Scatec Solar, Norfund and Africa50, the Infrastructure Fund for Africa. The projects are located in the Benban solar park in Aswan in Upper Egypt, which upon completion will be the largest solar installation in the world with a planned total capacity of 1.8 GW.
Scatec Solar completed a thorough environment assessment before construction start. Hundreds of mostly local workers are being employed to build the solar plants.
The 400 MW solar plants will produce 870 GWh of electricity annually, avoiding about 350,000 tons of CO2 emissions per year, supporting Egypt’s emission reduction targets under the Paris Climate Agreement. Egypt has committed to increase the share of renewables in the country’s power mix to 37% by 2035.