MIGA Boosts Tunisia’s First Large-Scale Solar Energy Project
WASHINGTON, July 31, 2024 — The Multilateral Investment Guarantee Agency of the World Bank Group (MIGA) has issued a guarantee to AMEA Power Ltd. of the Cayman Islands for its investments in Kairouan Solar Plant, SARL in Tunisia. The $23.5 million guarantee covers the risks of transfer restriction and currency inconvertibility, expropriation, war and civil disturbance, and breach of contract for 18 years. The project is also being financed by the International Finance Corporation of the World Bank Group (IFC) and African Development Bank (AfDB).
The MIGA guarantee will enable the development, financing, construction, operation and maintenance of 100 MW grid-connected solar photovoltaic power plant on a build-own-and-operate basis, in Kairouan, Tunisia. Electricity generated from the project will be sold to the state-owned enterprise, Société Tunisienne de l’Electricité et du Gaz (STEG), under a 20-year power purchase agreement. This landmark project will be the first large-scale privately financed grid-connected solar independent power producer in the country and will support the government of Tunisia’s goal to increase the share of renewable energy in its energy mix to 35% by 2030.
Our guarantees in middle-income countries will accelerate their green transition to a clean and sustainable energy future,” said Hiroshi Matano, MIGA Executive Vice President. “We are excited to collaborate with the private sector in Tunisia to significantly increase its share of renewable energy for a prosperous future.”
The project will help meet the increasing electricity demand and lower the cost of power generation in Tunisia and supports the country’s efforts to achieve self-sufficiency by utilizing its domestic renewable sources of energy, thus enabling STEG to reduce its exposure to gas price volatility and exchange rate fluctuations and easing the fiscal burden on the government, while restoring its macro-stability.
The project is also consistent with the low-carbon and climate-resilient goals of the Paris Agreement and will help in reducing GHG emissions in the country.
“This is a significant milestone for AMEA Power, as the country’s first privately financed solar project, paving the way for a greener Tunisia,” said Hussain Al Nowais, Chairman of AMEA Power. “By taking advantage of its renewable energy resources, and its strategic location between North Africa and Europe, Tunisia can become a prime location for green energy and trade.”
Tunisia’s ambitious plan to increase renewable energy production is geared toward reducing its overreliance on imported gas for its power generation that threatens its energy security. The Kairouan Solar Project will be the first milestone to achieve the government’s plan and will pave the way for further private investments in the sector.
About AMEA Power, Ltd.
Founded in 2016, AMEA is a regional developer, owner, and operator of renewable energy assets in Africa, the Middle East, and other emerging markets, based in the UAE. AMEA’s core business includes onshore wind, solar PV, battery storage, green hydrogen and ammonia, and water desalination. AMEA has more than 1.2GW of clean energy projects either in operation or under construction in Burkina Faso, Egypt, Jordan, Morocco, and Togo.
About World Bank Group Guarantees
Initiated in 2024, World Bank Group Guarantees consolidates all guarantee products and experts from across the World Bank Group institutions at MIGA. It provides a simplified and comprehensive menu of guarantee solutions, enabling clients to select the instrument that best suits their needs. The platform streamlines processes, removes redundancies, and provides greater accessibility by de-risking investments in developing countries. Its goal is to boost the WBG’s annual guarantee issuance to $20 billion by 2030.
For more information about the guarantee platform, please visit: https://www.worldbank.org/wbgguarantees
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Contact:
In Washington: Elizabeth Howton, (202) 458-5922 or ehowton@worldbankgroup.org