The European Bank for Reconstruction and Development (EBRD) will now focus on financing renewable energy in Middle East and North Africa, its director Philip ter Woort, has announced.
The European Bank believes that the move will enable the Middle East and North Africa region to curb the current power shortage that is slowing economic progress in the region..
The EBRD and other financial institutions will launch a funding framework for private sectors inclined on renewable energy in Middle East and North Africa region. Private sector developers in Morocco, Egypt, Tunisia, and Jordan are set to benefit from this framework.
The director was speaking to journalists following the signing of a contract agreement with the National Bank of Kuwait – Egypt (NBK), to grant NBK $50m from EBRD.
The EBRD, along with the Climate Investment Funds’ Clean Technology Fund, and Global Environment Facility (GEF), will provide $250 million through debt and equity funding.
The first project to receive funding under this framework will be 120 MW MW Khalladi wind farm near Tangiers in Morocco, which is being developed by a special purpose company jointly owned by ACWA Power, Argan Infrastructure Fund, and UPC Renewables North Africa, that also received funding worth $124 million from Moroccan commercial bank BMCE Bank.
Egyypt is one of the county in North Africa that is set to highly benefit from the project as they are aggressively looking for funders in the energy sector as there are more power needed in its upcoming new city.