The African Development Bank (AfDB) is putting its financial weight behind Africa’s largest under-construction solar power plant, through a USD 184.1 mn financing package approved by the development bank’s board that will go towards the Obelisk 1.1 GW solar and 200 MWh battery storage project in Nagaa Hammadi, the development bank said in a statement.

The recently approved funding will account for nearly a third of the project’s entire investment cost, estimated to total some USD 590 mn. Alongside the AfDB, Scatec signed equity bridge loans worth USD 120 mn for the project and put off project equity injections until construction is done. The Arab Energy Fund will also provide USD 90 mn, while the European Bank for Reconstruction and Development will provide another USD 30 mn.

REMEMBER- The first phase will bring 561 MW of solar energy and /200 MWh of battery storage online in the first half of 2026 and the second phase will add another 564 MW of solar power in the second half of 2026. Scatec will also handle engineering, procurement and construction, asset management, and operations & maintenance and has signed a USD-denominated, 25-year Power Purchase Agreement with the Egyptian Electricity Transmission Company.

Canada also contributed USD 18.6 mn to the total amount via the Canada-AfDB Climate Fund, which Canadian Ambassador to Egypt Ulric Shannon said it was proud to do, describing the project as “a meaningful step toward enhancing energy security and stability, with direct benefits for the Egyptian people.”

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