AfDB Approves USD 66 Million for Egypt's Dandara Solar Project

The African Development Bank Group (AfDB) has approved up to USD 66 million in financing for the first phase of Egypt's 500-megawatt Dandara Solar Power Project in Nagaa Hammadi, supporting the country's efforts to expand renewable energy generation.

The financing will support the design, construction, operation and maintenance of a photovoltaic power plant integrated with a 100-megawatt-hour battery energy storage system.

The project is expected to become fully operational at the beginning of 2028. Once completed, it is projected to generate approximately 1,373 gigawatt hours of electricity annually while reducing carbon dioxide emissions by around 500,000 tonnes each year. Construction is also expected to create around 2,500 jobs, with a further 23 permanent positions during operations, including opportunities targeted at women and young people.

Electricity generated by the facility will be supplied to Misr Aluminum Company (EgyptAlum) under a long-term take-or-pay power purchase agreement. EgyptAlum, which has been listed on the Egyptian Exchange since 1997, is one of Africa's largest aluminium producers.

The financing package comprises USD 46 million from the African Development Bank's ordinary resources and USD 20 million in concessional financing from the Climate Investment Funds' Clean Technology Fund, with additional debt expected from a consortium of development finance institutions.