On December 15, 2017, MIGA signed a contract in which it agreed to issue guarantees of $39,755,492 to ICBC of China for its investments into ACWA Benban One for Energy JSC. The guarantees are issed for up to 20 years against the risks of Transfer and Convertibility Restrictions, Breach of Contract, Expropriation and War and Civil Disturbance.
The project is part of Egypt’s Feed-in-Tariff Round Two program and consists of design, development, construction, operation and maintenance of a 50MW greenfield solar IPP facility located in the Benban solar complex in the Aswan Governorate of Egypt.
Egypt needs additional generation capacity to meet its growing energy demand and support economic growth and private sector development. Despite existing hydrocarbon production and significant new gas discoveries, Egypt is presently a net energy importer, with fossil fuels accounting for over 90% of power generation. The project will add to existing generation capacity, while diversifying power generation mix and increasing self-sufficiency by reducing dependence on fossil-fuel energy imports. Besides making Egypt’s economy less vulnerable to fluctuations in oil and gas prices, the project will reduce carbon emissions by producing emission-free power, aligned with the Paris Agreement.