Scatec secures $217 million financing for first phase of Dandara solar project in Egypt

what happened

Norway-listed Scatec, citing its own disclosure as reported by TradingView, said it has signed loan agreements for the first phase of the Dandara project for Egypt Aluminium and has started construction of the power plant. The National Bank of Egypt will join as a partner with a 20% stake, and the first phase includes a 569 MW solar plant paired with a 100 MWh battery storage system.

The electricity will be sold to Egypt Aluminium under a 25-year power purchase agreement backed by a sovereign guarantee. Non-recourse project debt of $217 million comes from the EBRD, the African Development Bank and the European Investment Bank, covering about 80% of the estimated $271 million first-phase capex. Commercial operation is targeted for the first half of 2028, and work on the second phase is expected to begin in the first half of 2027.

why it matters

For Scatec, the deal reduces construction financing risk, and the company will deliver EPC, asset management and O&M services on the project. Its ownership reaches 56% after the NBE and EBRD transactions, and it plans to bring in more equity partners and defer its own equity injection until construction ends. For markets, it signals that large renewable projects in Egypt can still attract multilateral lenders.

market impact

Scatec (SCATC): large financing reduces construction risk in Egypt and supports the company's regional position

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