The Board of Directors of the African Development Bank (AfDB) has approved the granting of a loan envelope, consisting of 27 million dollars and 10 million euros, to co-finance the construction of a solar power plant of 100 megawatts in Kairouan, Tunisia, the financial institution said on Tuesday.
Its press release explains that the approval concerns $10 million and €10 million from the Bank, as well as $17 million in concessional financing granted through the Sustainable Energy Fund for Africa (SEFA), a fund multi-donor fund managed by the Bank. Additional financing will be provided by the International Finance Corporation (IFC), a subsidiary of the World Bank Group and the Clean Technology Fund (FTC).
The project relating to the construction of the Kairouan solar power plant includes the design, construction and operation of a photovoltaic solar power plant with a capacity of 100 megawatts, within the framework of a « BOO » type program (construction , possession, operation).
Located in El Metbassta, in the Kairouan North region, some 150 kilometers south of Tunis, the capital, the project is managed by Kairouan Solar Plant S.A.R.L., developed by Dubai-based AMEA Power.
According to AfDB Vice President for Power, Energy, Climate and Green Growth, Kevin Kariuki, « the 100 megawatt solar photovoltaic project in Kairouan will not only be a pioneer for other off-grid solar and wind energy, which is being developed in Tunisia today, but also a benchmark for the viability of renewable energy projects in the country, as it is underpinned by agreements strong and durable, traded over the last three years under extremely onerous market conditions”.
“We are pleased to support the first independent solar power generation project in Tunisia,” said Wale Shonibare, Director for Financial Solutions, Energy Policy and Regulation at the African Development Bank.
According to him, « the success of the transaction, which meets the highest standards of financial viability, after months of negotiations with the Tunisian authorities, constitutes a useful model for future projects, which will help the country to move closer to the 35% clean energy target that the government has set”.
The press release finally notes that the Kairouan solar project aligns with Tunisia’s Nationally Determined Contributions and its objective of reducing carbon emissions by focusing on a transition to renewable energy sources. It also responds to the AfDB’s « New Deal » on energy for Africa and one of its strategic priorities, the « High-5s », « light up and power Africa ».
By OMA Newsletter N° 989 of 23/12/2022
Article published under the direction of Dr. Najib Kettani
The OMA, NGO with an Intercontinental vocation
For the development of cultural exchanges
Valuing human potential
The promotion and consolidation of Africa’s development, and
Inter-African integration
