The European Bank for Reconstruction and Development (EBRD) and Proparco, a French governmental financial institution that supports private sector development projects in emerging economies, have provided $116 million of financing for the construction and operation of two 50 MW solar photovoltaic power plants in Egypt. According to the organizations, these are the first two projects to be financed under the second round of Egypt's ambitious feed-in tariff scheme for renewables and will be part of the planned 1.8 GW »Benban« solar complex in Aswan province, in the southern area of Upper Egypt.

They are also the first projects under the EBRD’s new $500 million framework for renewable energy in Egypt, which is expected to finance a total of 16 such projects delivering 750 MW of capacity and under Proparco’s dedicated envelope for solar projects in Egypt. The new facilities will be constructed, operated and owned by two Egyptian subsidiaries of the French company EREN Renewable Energy and Access Power, the Dubai-based developer, owner and operator of sustainable power plants.

More than 50 percent of the population in the Aswan region live below the poverty line. According to an announcement, the EBRD’s and Proparco’s solar projects in »Benban« will bring a significant short-term boost to the economy through the construction activities. Between 2007 and 2016 the EBRD invested more than €3.5 billion ($4.1 billion) directly in renewable energy, supporting 104 projects in 23 countries, and funding more than 5.3 GW of capacity

In Egypt alone, the Bank has invested €2.6 billion in 49 projects to date. Egypt is a founding member of the EBRD. Proparco and its parent institution, Agence Française de Développement, have been consistently financing projects in Egypt and nearly €2 billion in financing has been granted since the first loan was made in 2006.