IFC to invest in Shapoorji Pallonji arm’s solar project in Egypt

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International Finance Corporation, the private-sector investment arm of the World Bank, is planning to invest in a greenfield 50 MW photovoltaic plant being developed by Shapoorji Energy (Egypt) SAE.

Shapoorji Energy (Egypt), is a subsidiary of Shapoorji Pallonji Infrastructure Capita Co. Pvt Ltd, part of India’s Shapoorji Pallonji Group.

While the total cost of project cost is up to $76 million, IFC will extend $19 million as debt financing from its own account (or ‘A’ loans) and make provisions for syndications of up to $38 million, IFC said in a disclosure.

IFC will act as sole mandated lead arranger to arrange all of the required project financed debt and to provide the interest rate swaps required to support the financing structure.

“IFC’s mobilization role is expected to help raise up to $38 million from various sources through B and/or parallel loans, with a significant reliance on other DFIs,” it said. “The leading role would be crucial in providing enough comfort to other lenders to complete financing of the Project.”

The proposed project is being set up inside a 1.8 gigawatt PV solar park comprising 39 separate photovoltaic (PV) plots spread over an area of 37.5 square km in Benban village, situated close to Aswan city in southern Egypt.

Sterling and Wilson Pvt. Ltd will act as the project Engineering, Procurement, and Construction (EPC) contractor, and will undertake the role of the operations and maintenance for this project. Sterling and Wilson’s EPC division is now providing solar EPC solution in India with installed capacity of more than 1GW. Globally it is has a pipeline of 1,300 MW projects including 180 MW in Egypt, IFC said in its disclosure.

Shapoorji Energy (Egypt) SAE is owned by Shapoorji Pallonji Infrastructure Capita Co, which was set up in 1997 to develop and own infrastructure assets under the PPP umbrella, primarily focused in the power, ports, resources and transportation sectors. Shapoorji Pallonji Group is an Indian conglomerate with investments in diverse sectors including real estate, mechanical electrical and plumbing contracting, water purification, infrastructure development, solar power generation and contracting.

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