Published On: Fri, Jun 9th, 2017

IFC Looks to Invest in Shapoorji Pallonji Arm’s Solar Plant in Egypt

Shapoorji Energy (Egypt) SAE is a subsidiary of Shapoorji Pallonji Infrastructure Capital Company Ltd.,  has bagged the project to develop a 50 megawatt photovoltaic (PV) plant.  The proposed project is being set up inside a 1.8 gigawatt PV solar park spread over an area of 37.5 square km in Benban village, situated close to Aswan city in southern Egypt.

International Finance Corporation (IFC), the private-sector investment arm of the World Bank, is looking to invest in this project being developed by SAE.

IFC’s proposed investment includes debt financing of $19 million from its own account (also called ‘A’ loans) and syndications of up to $38 million from other financial institutions. The total project cost is estimated to be around $76 million.

The engineering, procurement, and construction (EPC) contractor for the project are Sterling and Wilson Pvt. Ltd, a company under Shapoorji Pallonji Group. According to the release, Sterling and Wilson’s EPC division has an installed solar capacity of more than 1 gigawatt.

Group company Sterling & Wilson is the largest solar project construction company in India. It has also built plants in South Africa and The Philippines.

IFC has an active direct private equity-style investment practice in India. It also leads to firms and has an active limited partner, or LP, portfolio in India where it backs PE and VC funds.

Shapoorji Pallonji Group is a conglomerate with investments in diverse sectors including real estate, mechanical, electrical and plumbing contracting, water purification, infrastructure development and solar power generation.

Shapoorji Energy (Egypt) SAE was set by in 1997 to develop and own infrastructure assets, primarily power, ports, resources, and transportation, under the public-private partnership mode.

In February, IFC had said that it planned to invest up to $15 million in solar power solutions firm Clean Max Enviro.

The Shapoorji Pallonji group, which has companies such as Shapooji Pallonji & Company Ltd., Afcons Infrastructure, Sterling & Wilson and Eureka Forbes, is the largest private shareholder in the holding company of the Tata group, Tata Sons Ltd., with 18.4 per cent stake. The SP group is predominantly into construction.

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