Egypt has secured a financial package of up to $66 million from the African Development Bank Group (AfDB) to implement the first phase of the 500-megawatt (MW) Dandara solar power project in Nagaa Hammadi, according to an AfDB statement.
The bank’s board approved the package on July 13, which is dedicated to supporting the design, construction, operation, and maintenance of a photovoltaic (PV) power plant with an integrated 100 megawatt-hour (MWh) battery energy storage system.
The project is expected to be fully operational at the beginning of 2028 and to generate an estimated 1,373 gigawatt-hours (GWh) of clean, reliable, and cost-effective electricity each year. It is also expected to reduce annual carbon dioxide (CO2) emissions by about half a million tons (m/t) and create about 2,500 jobs during construction and 23 permanent roles during operation, with a special focus on women and youth employment.
The electricity produced by the Project will be sold to Misr Aluminum Company, EgyptAlum, as the offtaker, under a take-or-pay long-term Power Purchase Agreement (PPA). EgyptAlum is a highly profitable, blue-chip public enterprise listed on the Egyptian Stock Exchange (EGX) since 1997 and is one of Africa’s largest aluminum producers.
“The project depicts industrial decarbonization at best. It will enable EgyptAlum to safeguard its European aluminum market share while protecting more than 6,000 Egyptian jobs amid the European Union’s Carbon Border Adjustment Mechanism (CBAM), which took effect in January 2026,” said Kevin Kariuki, AFDB ‘s Vice President for Power, Energy, Climate, and Green Growth. He further noted that the project will reduce CO2 emissions by about 12.5 m/t over its life.
The package includes $46 million from its ordinary resources and $20 million in concessional funding from the Climate Investment Funds’ Clean Technology Fund (CTF), with additional debt to be mobilized from a consortium of development finance institutions.
The Dandara solar power project, with a total cost of over $290 million, is implemented under the national platform of the Nexus of Water, Food, and Energy (NWFE) program, aiming to increase Egypt’s renewable energy capacity by approximately 10 gigawatts (GW) by 2028. The project was signed in October 2025 between Dandara Solar Energy Company, a subsidiary of Norway’s Scatec ASA, a global leader in renewable energy, and several international financial institutions, including the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and the European Investment Bank (EIB).
