Arab Finance: Prime Minister Mostafa Madbouly witnessed the signing of a preliminary financing terms agreement for the Dandara solar power project in Nagaa Hammadi, Qena Governorate, with total investments estimated at $650 million.

The project will have a total solar power capacity of 1 gigawatt (GW), supported by a battery energy storage system with a capacity of 200 megawatt-hours (MWh).

Norway-based Scatec and representatives of the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), and the African Development Bank (AfDB) signed the agreement.

Additional agreements were sealed to link the project to Egypt’s national electricity grid and to enable the National Bank of Egypt (NBE) to acquire an equity stake in the project company, Dandara Solar Energy.

The project will be implemented in two phases, with the first involving a 500-megawatt (MW) solar power plant and a 100-MWh battery storage system. The second phase will add another 500 MW of solar capacity and 100 MWh of storage.

It aims to supply around one-third of the electricity needs of Egypt Aluminum Company, a unit of Metallurgical Industries Holding Company (MIH), helping reduce carbon emissions from aluminum production.

Moreover, the joint venture (JV) is expected to enhance the competitiveness of Egyptian products and improve their access to global markets.

Scatec CEO Terje Pilskog inked the financing deal with Gelsomina Vigliotti, EIB Vice President; Mark Davis, EBRD Managing Director for the SEMED region; and Abdourahmane Diaw, AfDB Country Manager in Egypt.

Meanwhile, the grid connection agreement was signed by Mona Rezk, Chairperson of the Egyptian Electricity Transmission Company (EETC); Mohamed El-Saadawy, Chairman and Managing Director of MIH; and Mohamed Amer, Chairman and project representative of Dendera Solar Energy.

The final agreement on NBE’s equity in Dendera Solar Energy was signed by Amer and Ahmed El-Said, NBE’s Chief Investment Officer and Head of Investments.

In 2025, the government inked letters of intent (LoI) with international financial institutions to finance the Dandara Solar Energy Project, which will supply clean energy to Egyptalum complex in Nagaa Hammadi.