Tunis/Tunisia — The Board of Directors of the African Development Bank (AfDB) Group authorized a $27 million (about TND 85.3 million) and €10 million (just about TND 33.5 million) mortgage package deal to co-finance the development of a 100-megawatt Solar energy plant in Kairouan, Tunisia, the AfDB stated on Thursday.

The Board approval covers $10 million and any other €10 million from the Bank, and $17 million concessional financing from the Sustainable Energy Fund for Africa (SEFA), a different multi-donor fund controlled by means of the Bank. Additional financing will come from the International Finance Corporation (IFC) of the World Bank Group and the Clean Technology Fund (CTF).

The challenge includes the design, development, and operation of a greenfield sun photovoltaic (PV) plant with a capability of 100 megawatts below a Build, Own and Operate (BOO) scheme. The challenge is situated in El Metbassta, Kairouan North area, about 150 km south of the Tunisian capital, Tunis. It is one among 5 renewable tasks awarded in 2019 by means of the federal government. Société Kairouan Solar Plant S.A.R.L., evolved by means of Dubai-based AMEA Power, will set up the challenge.

“The 100 megawatts 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,” Vice President of Power, Energy, Climate and Green Growth on the African Development Bank Kevin Kariuki stated.

For his section Director of Energy Financial Solutions, Policy and Regulation on the African Development Bank Wale Shonibare stated “we are delighted to support the first solar IPP project in Tunisia.”

“The success of the transaction, which has reached the highest bankability standards following months of negotiations with the Tunisian authorities, provides a useful template for future projects that will help move the country closer towards achieving the government’s 35% clean energy target,” he added.

The SEFA’s concessional phrases below the programme will most likely soak up the Covid-19-related challenge price build up and care for the challenge economics to suitable ranges to succeed in monetary shut, stated the Bank’s Director of Renewable Energy and Energy Efficiency in command of SEFA Daniel Schroth.

“The Kairouan solar project epitomizes the catalytic effect of SEFA in support of developers to deliver sustainable renewable projects that aid Africa’s energy transition,” he indicated.