On December 15, 2017, MIGA signed a contract in which it agreed to issue $15,771,171 in guarantees to ICBC of China for its investments into TK Company for Solar and Renewable Energy Systems JSC. The guarantees are issued for up to 20 years against the risks of Transfer and Convertibility Restrictions, Breach of Contract, Expropriation and War and Civil Disturbance.
The projects are part of Egypt’s Feed-in-Tariff Round Two program and consist of design, development, construction, operation and maintenance of three greenfield solar IPP facilities with installed capacities of 120MW (ACWA Benban One for Energy - 50MW, TK Company for Solar and Renewable Energy Systems JSC - 20MW and Alcom Energy JSC – 50 MW) 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.