Tunisia: African Development Bank Group board approves $27 million and €10 million loans for Kairouan solar plant | African Development Bank

The Board of Directors of the African Development Bank Group has approved a $27 million and €10 million loan package to co-finance the construction of a 100 megawatt solar power plant in Kairouan, Tunisia.

The Board approval includes $10 million and an additional €10 million from the Bank, and $17 million concessional funding from the Sustainable Energy Fund for Africa (SEFA), a dedicated multi-donor fund managed by the Bank. Additional funding will come from the World Bank Group’s International Finance Corporation (IFC) and the Clean Technology Fund (CTF).

The project involves the design, construction and operation of a 100 megawatt greenfield solar photovoltaic (PV) plant under a Build, Own and Operate (BOO) scheme. The project is located in El Metbassta, Kairouan North region, about 150 km south of the Tunisian capital Tunis. It is one of five sustainable projects awarded by the government in 2019.

Société Kairouan Solar Plant SARL, developed by Dubai-based AMEA Power, will manage the project.

“The 100 megawatt Kairouan Solar PV project will not only be a pioneer for other grid-based solar and wind independent energy projects currently under development in Tunisia, but also a benchmark for the financeability of renewable energy projects in the country, as it is backed by robust and sustainable agreements negotiated over the past three years under extremely difficult market conditions,” said Dr. Kevin Kariuki, Vice President of Power, Energy, Climate and Green Growth at the African Development Bank.

“We are delighted to support the first solar IPP project in Tunisia,” said Mr. Wale Shonibare, Director of Energy Financial Solutions, Policy and Regulation at the African Development Bank. He added: “The success of the transaction, which has met the highest bankability standards after months of negotiations with the Tunisian authorities, provides a useful model for future projects that will take the country closer to reaching its 35% clean energy from the government. “

Dr. Daniel Schroth, the bank’s director of renewable energy and energy efficiency in charge of SEFA, noted that SEFA’s concessional terms under the program are likely to cushion the increase in project costs related to Covid-19 and will keep the project economy at an acceptable level to be financially closed. “The Kairouan solar project embodies the catalytic effect of SEFA in supporting developers to deliver sustainable renewable projects that support Africa’s energy transition,” he said.

The Kairouan Solar project aligns with Tunisia’s Nationally Determined Contribution and goal to reduce CO2 emissions by moving to renewable energy sources. It is also in line with the African Development Bank’s New Deal on Energy for Africa and the strategic priority “Light up and Power Africa”.

About SEFA

SEFA is a multi-donor dedicated fund that aims to unlock private sector investment to provide universal access to affordable, reliable, sustainable and modern energy services for all in Africa, in line with the New Deal on Energy for Africa strategy and the Bank’s Sustainable Development Goal 7.

About AMEA Power

AMEA Power was founded in 2016 and is headquartered in Dubai, United Arab Emirates. The company develops, finances, builds, owns and operates renewable energy facilities in Africa, the Middle East and Asia. The company has about 70 employees. Current activities are in the field of onshore wind, solar energy, battery storage, green hydrogen and water desalination. AMEA is a strategic client of the Bank, which is facilitated by the close cooperation between the two institutions.