IFC, an institution that is member of World Bank Group, announced in July 20 to invest $635 million to construct and operate up to 11 solar plants in Egypt. All the plants combined capacity will be 500 Megawatts. This investment is part of the Egypt’s prestigious solar energy plant Feed-In Tariff (FIT) program, totaling $730 million that aims to harness Egypt’s massive solar resource. The $635 million investment is the largest FDI investment Egypt has ever witnessed in the country’s power sector.
Not only will the solar power plant reduce greenhouse gas emissions but it will also spur economic growth and create both long term and short term jobs in Egypt. According to Mouayed Makhlouf, IFC Director for the Middle East and North Africa, investors can be attracted in every sector including infrastructure development given that right reform policies are encouraged and the government willing to involve greater role by the private sector.