Egypt - Dandara 500MW PV+100MWh BESS Project (AFDB-P-EG-F00-018)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Egypt
Geographic location where the impacts of the investment may be experienced.
Specific Location
Nagaa Hammadi, Qena Governorate
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • African Development Bank (AFDB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jul 8, 2026
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Scatec ASA
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant, Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 66.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 46.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Grant Amount (USD)
$ 20.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 292.05 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ AFDB website

Updated in EWS Oct 16, 2026

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the AfDB, the project aims to support the decarbonization of EgyptAlum by supplying renewable electricity from a 500 MW solar PV plant combined with a 100 MWh battery storage system, while contributing to Egypt’s broader energy transition. More specifically, the project seeks to reduce EgyptAlum’s dependence on fossil-fuel-based grid electricity, lower greenhouse gas emissions, preserve the company’s competitiveness and access to the European Union market under the Carbon Border Adjustment Mechanism, increase renewable generation and storage capacity in Egypt, and support the country’s target of reaching 42% renewable energy in the electricity mix by 2030. The project is expected to avoid approximately 0.5 million tonnes of CO? equivalent emissions per year.

The Dandara 500 MW Solar PV & 100 MWh Battery Energy Storage System (BESS) Project is a private-sector renewable energy and industrial decarbonization project in Egypt. The project involves the design, construction, operation and maintenance of a 500 MWac solar photovoltaic power plant, co-located with a 100 MWh battery energy storage system, together with an associated high-voltage step-up substation at Nagaa Hammadi. The project will connect to the national transmission network through the existing 220 kV Nagaa Hammadi Substation, located approximately 1 km from the project site. The project is being developed by Scatec ASA through the special-purpose vehicle Dandara Solar Power S.A.E. Its main purpose is to decarbonize the electricity consumption of the Aluminium Company of Egypt (EgyptAlum).

Electricity generated by the plant will be injected into the national grid under a corporate Power Purchase Agreement signed directly with EgyptAlum, allowing the company to receive credit for the renewable electricity produced. The Egyptian Ministry of Finance has guaranteed certain payment and termination obligations under the PPA. The total project cost is estimated at USD 292.05 million, financed through a combination of debt and equity.

The African Development Bank is considering financing of up to USD 66 million, comprising up to USD 46 million from its ordinary resources and up to USD 20 million from the Clean Technology Fund (CTF). The remaining debt will be provided by other participating development finance institutions, although their individual amounts are not specified in the document. The Bank will also act as a co-Mandated Lead Arranger, leading key technical, financial modelling and tax advisory workstreams. The project will be implemented under Scatec’s integrated EPC and long-term operation and maintenance model, with Scatec ASA and Scatec Egypt LLC responsible for engineering, procurement, construction and long-term plant operation.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

According to the AfDB, the total project cost is estimated at USD 292.05 million, to be financed through a mix of debt and equity. The AfDB is committing up to USD 66.0 million, comprising up to USD 46.0 million from its ordinary resources and up to USD 20 million from the Clean Technology Fund (CTF). The remaining debt will be provided by other participating Development Finance Institutions (DFIs).

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by Bloomberg, Scatec ASA operates as an energy company. The Company develops, builds, owns, operates and maintains solar, hydro, and wind power plants that generate clean and reliable electricity. Scatec serves customers worldwide.

Egypt Aluminium manufactures aluminum products. The Company produces aluminum alloys, billets, wire, T-bars, slabs and sheets and semi-finished goods including hot and cold rolled plates and strips. Egypt Aluminium markets its products in Egypt and exports to Europe, North America, the Near East, and Asia.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
Egypt Aluminium Company (Egyptalum) Buyer Industry and Trade contracts with Scatec ASA Client Energy

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

AfDB Team Leader:

James Otto
Email: j.otto@afdb.org 

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.afdb.org/en/disclosure-and-access-to-information/request-for-documents. Under the AfDBÕs Disclosure and Access to Information policy, if you feel the Bank has omitted to publish information or your request for information is unreasonably denied, you can file an appeal at https://www.afdb.org/en/disclosure-and-access-to-information/appeals-process.

ACCOUNTABILITY MECHANISM OF AfDB

The Independent Review Mechanism (IRM), which is administered by the Compliance Review and Mediation Unit (CRMU), is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an African Development Bank (AfDB)-financed project. If you submit a complaint to the IRM, it may assist you by either seeking to address your problems by facilitating a dispute resolution dialogue between you and those implementing the project and/or investigating whether the AfDB complied with its policies to prevent environmental and social harms. You can submit a complaint electronically by emailing crmuinfo@afdb.org, b.kargougou@afdb.org, b.fall@afdb.org, and/or s.toure@afdb.org. You can learn more about the IRM and how to file a complaint at: https://www.afdb.org/en/independent-review-mechanism/

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