AIIB announces $210m support for renewable energy projects in Egypt

The Asian Infrastructure Investment Bank (AIIB) announced Tuesday that it would provide up to $210 million in debt financing to tap renewable energy in Egypt.

The project will consist of 11 greenfield solar power plants with an aggregate capacity of 490 mW, according to an AIIB statement.

"We are supporting this project because it contributes to Egypt's renewable energy capacity and will help position the country as a regional energy hub, which will have economic benefits for the entire region," said D.J. Pandian, AIIB vice-president and chief investment officer.

This solar power project will increase Egypt's power generation capacity, reduce the country's dependence on gas and fuel for electricity generation, and will help the country meet its commitments under the Paris Climate Agreement as it moves towards an environmentally sustainable energy mix, according to the AIIB.

Egypt's huge solar resources, together with its strategic vision for green growth, will allow this project to generate global environmental benefits by avoiding greenhouse gas emissions of more than half a million tons of CO2 per year.