- The project will design, build, and operate a 100MW solar PV plant under a build, own, and operate the model.
- The Project aligns with the African Development Bank’s New Deal on Energy for Africa and the “Light up and Power Africa”.
The African Development Bank (AfDB) has approved a loan package totalling $27 million and €10 million to co-finance a 100MW solar power plant in Kairouan, Tunisia.
The approval includes $10 million plus €10 million from the AfDB, as well as $17 million in concessional financing from the Sustainable Energy Fund for Africa (SEFA). The International Finance Corporation (IFC) and the Clean Technology Fund will provide additional funding (CTF).
The project will design, build, and operate a 100MW solar PV plant under a build, own, and operate the model. It is located in El Metbassta in the Kairouan North Region, about 150 kilometres south of Tunis. It is one of five renewable projects awarded by the government in 2019.
Dr Kevin Kariuki, AfDB vice-president of power, energy, climate and green growth: “The 100MW Kairouan Solar PV Project will not only be a pioneer for other grid-based solar and wind independent power projects currently under development in Tunisia but also a benchmark for bankability of renewable energy projects in the country as it is underpinned by robust and sustainable agreements negotiated over the last three years under extremely onerous market conditions.”
The Kairouan Solar project is consistent with Tunisia’s NDC and goal of reducing carbon emissions through the transition to renewable energy sources. It also aligns with the African Development Bank’s New Deal on Energy for Africa and the “Light up and Power Africa” High-5 strategic priority.
Dr Daniel Schroth, the Bank’s Director of Renewable Energy and Energy Efficiency in charge of SEFA, noted that the special fund’s concessional terms under the programme will likely absorb the COVID-19-related project cost increase and maintain the project economics to acceptable levels to achieve financial close.