Project description
As part of the Government of Tunisia (“GoT”) commitment to reduce greenhouse gas emissions (“GHG”) under the Paris Agreement and its updated Nationally Determined Contributions, and to meet electricity demand growth, while reducing the fiscal burden of importing gas, the GoT has an ambitious plan to increase the renewable energy share to 35% of the overall country’s energy mix by 2030. Toward this, in December 2019, the GoT awarded AMEA Power Ltd through a competitive bid a concession to design, finance, build, own, and operate a grid-connected 100 MW solar power plant located in the Kairouan Governorate in the delegation of Sbikha, approximately 110km south of Tunis, 15km north of Kairouan and about 500m northeast of the Sbikha Industrial zone. (the “Project”)
AMEA was founded in 2016 and is headquartered in Dubai, UAE. The company develops, finances, builds, owns, and operates renewable energy plants in Africa, Middle east, and Asia. The Project Enterprise, a special purpose vehicle, Kairouan Solar Plant Sarl., has been set-up.
The Proposed MIGA Guarantee will cover the equity, shareholder loan, or quasi-equity investments of AMEA Power Ltd in Kairouan Solar Plant with an amount up to US$38.5 million against the risks of Transfer Restriction and Currency Inconvertibility, War and Civil Disturbance, Expropriation, and Breach of Contract for a period of 20 years.
Environmental Categorization
The Project is a Category B under MIGA’s Policy on Environmental and Social Sustainability (2013). Click here to view the Environmental and Social Review Summary.
Development Impact
The Project is expected to yield high development impact in Tunisia with main benefits expected to be: (i) improved sustainability of energy sector through decreasing Tunisia’s average cost of electricity generation; (ii) reducing the dependency of Tunisia energy sector on the imported gas and reduce its vulnerability to the volatile gas prices, while diversifying its energy mix; (iii) climate mitigation benefits through GHG emissions avoidance; and (iv) demonstrating the viability of the IPP model in Tunisia’s energy sector.
