meed-logo

line1 line2 line3
SIGN IN / REGISTER

Deal for Africa Energy Bank signed in Egypt

5 June 2024

African Export-Import Bank (Afreximbank) and the Africa Petroleum Producers’ Organisation (APPO) have signed the establishment document for the Africa Energy Bank (AEB) in Cairo with an initial sum of $5bn.

The new entity’s primary focus will be financing oil and gas projects in Africa at a time when Western banks are under pressure to avoid financing projects that have a high carbon footprint.

The signing ceremony was held at the Egyptian Ministry of Petroleum and Mineral Resources after more than two years of negotiations.

A memorandum of understand (MoU) regarding the formation of the AEB was originally signed in May 2022.

After intense negotiations about where the bank would be headquartered, Cairo was picked as the location.

The AEB has been structured as an independent and supranational pan-African energy development bank and is scheduled to start operations in July.

Now that the establishment documents have been signed by the two founding institutions, at least two member countries now need to sign and ratify the establishment documents.

In a statement, Afreximbank said: “The AEB was created to address the impending funding crisis in the African oil and gas industry, triggered by the global energy transition.

“Traditional financiers, on whom Africa has relied for decades, are withdrawing support, particularly in Africa, citing climate change concerns as the primary reason.”

It added: “The AEB’s primary objective is to fill the imminent void that the withdrawal of funding for oil and gas projects in Africa by the traditional financiers could cause to the industry.”

Egypt’s oil minister, Tarek El Molla, who is also a member of the APPO Ministerial Council, said: “It is a great honour to witness the establishment of the Africa Energy Bank.

“This moment marks a significant milestone in our continent’s journey towards energy independence and sustainable development.

“By harnessing our collective resources and expertise, we are paving the way for a brighter, more prosperous future for all Africans.

“The collaboration between Afreximbank and APPO is a testament to our unwavering commitment to powering Africa’s growth and ensuring energy security for generations to come.

Nj Ayuk, the executive chairman of the energy advocacy group African Energy Chamber, said: “The AEC is proud to see organisations such as APPO and Afreximbank taking concrete steps towards financing African energy projects.

“Despite ongoing pressure to relinquish fossil fuel financing and redirect capital towards renewables, these organisations are promoting a just transition in Africa – one that prioritises Africa’s development and recognises the role oil and gas plays.

“The Africa Energy Bank will play a catalysing role in expanding the energy industry in Africa while driving sustainable and equitable growth for the continent’s population.”

https://image.digitalinsightresearch.in/uploads/NewsArticle/11863657/main.jpg
Wil Crisp

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Chinese firm signs deal for Algerian steel project

    24 November 2025

    China’s Sinomach Heavy Equipment has signed a contract to develop a steel rolling facility in Algeria.

    The project will be executed by its subsidiary, China National Heavy Machinery Corporation (CNHMC).

    The turnkey contract includes planning, design, equipment supply, construction, installation and commissioning.

    The scope of the project includes:

    • A rolling mill production line
    • Auxiliary facilities
    • Steel structure workshops

    In a statement, CNHMC said: “The signing of this contract marks a new stage in the company's market expansion in the African metallurgical sector.

    “CNHMC will fully leverage its technological and management advantages in the metallurgical field, strictly control the project's quality and schedule, and strive to complete and deliver the project on schedule with high quality and high standards, making it a benchmark project in the Algerian market.”

    The company said it will use its regional headquarters in Turkiye to ramp up its activities in the Algerian market and other neighbouring countries.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15139865/main3657.jpg
    Wil Crisp
  • Contractors submit Riyadh Expo infrastructure bids

    24 November 2025

     

    Saudi Arabia’s Expo 2030 Riyadh Company (ERC), which is tasked with delivering the Expo 2030 Riyadh venue, received commercial bids from contractors on 23 November for the tender to undertake the initial infrastructure works at the site.

    The tender for the project’s initial infrastructure works was issued in September, MEED previously reported.

    In October, MEED revealed that 16 firms had been invited to bid for the contract to undertake the initial infrastructure works at the Expo 2030 Riyadh site.

    The firms invited to bid include:

    • Shibh Al-Jazira Contracting (local)
    • Hassan Allam Construction (Egypt)
    • El-Seif Engineering Contracting (local)
    • Al-Ayuni Investment & Contracting (local)
    • Kolin Construction (Turkiye)
    • Al-Yamama Trading & Contracting Company (local)
    • Saudi Pan Kingdom (local)
    • Unimac (local)
    • Mapa Insaat (Turkiye)
    • Yuksel Insaat (Turkiye)
    • IC Ictas / Al-Rashid Trading & Contracting (Turkiye/local)
    • Mota-Engil / Albawani (Portugal/local)
    • Almabani / FCC Construction (local/Spain)

    The overall infrastructure works – covering the construction of the main utilities and civil works at Expo 2030 Riyadh – will be split into three packages:

    • Lot 1 covers the main utilities corridor
    • Lot 2 includes the northern cluster of the nature corridor
    • Lot 3 comprises the southern cluster of the nature corridor

    In July, US-based engineering firm Bechtel Corporation announced it had won the project management consultancy deal for the delivery of the Expo 2030 Riyadh masterplan construction works.

    The masterplan encompasses an area of 6 square kilometres, making it one of the largest sites designated for a World Expo event. Situated to the north of the Saudi capital, the site will be located near the future King Salman International airport, providing direct access to various landmarks within Riyadh.

    Countries participating in Expo 2030 Riyadh will have the option to construct permanent pavilions. This initiative is expected to create opportunities for business and investment growth in the region.

    The expo is forecast to attract more than 40 million visitors.

    The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth vehicle, launched ERC in June as a wholly owned subsidiary to build and operate facilities for Expo 2030.

    In a statement, the PIF said: “During its construction phases, Expo 2030 Riyadh and its legacy are projected to contribute around $64bn to Saudi GDP and generate approximately 171,000 direct and indirect jobs. Once operational, it is expected to contribute approximately $5.6bn to GDP.”

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15140538/main.jpg
    Yasir Iqbal
  • Chinese firm signs deal for 4GW Saudi solar project

    24 November 2025

    Chinese firm Arctech has announced a cooperation agreement with PowerChina Huadong Engineering for the 4.2GW Afif solar photovoltaic (PV) project in Saudi Arabia.

    The partnership will involve Arctech supplying its SkyLine 2 single-axis tracking system, designed to follow the sun in high-wind and desert environments.

    Located near Riyadh, the Afif solar complex forms part of the Public Investment Fund’s (PIF) 15GW renewables programme announced earlier this year.

    It comprises two independent power projects (IPPs): Afif 1 (1.8GW) and Afif 2 (2.4GW). PowerChina Huadong is the engineering, procurement and construction (EPC) contractor for both schemes.

    In October, a consortium of Acwa Power, Water & Electricity Holding Company (Badeel) and Saudi Aramco Power Company (Sapco) reached financial close on five solar IPPs under the PIF programme, including Afif 1 and Afif 2.

    The deals were signed at the ninth Future Investment Initiative (FII) conference in Riyadh.

    The five projects have a combined value of about $6.4bn and a total capacity of more than 12GW. They include the 3GW Bisha solar IPP, the 3GW Humaij solar IPP and the 2GW Khulis solar IPP.

    India’s Larsen & Toubro is the EPC contractor for the Bisha and Humaij solar projects.

    China Energy Engineering Corporation (CEEC) recently signed the EPC contract for the 2GW Khulis solar PV project. 

    The firm also signed EPC contracts for the two remaining projects in the renewables package, the 1GW Shaqra wind project and the 2GW Starah wind project, reaching $2.75bn in contracts across the three projects.

    All schemes under the 15GW PIF renewables package are scheduled to begin operating between the second half of 2027 and the first half of 2028.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15133404/main.jpg
    Mark Dowdall
  • Wafra Joint Operations seeks more participation for upstream tender

    24 November 2025

     

    Wafra Joint Operations (WJO) is seeking more participation from companies in a tender for a project to upgrade a key oil and gas gathering centre in the Divided Zone, which is shared between Kuwait and Saudi Arabia, according to industry sources.

    A pre-bid meeting was held for the project, but due to low interest at the original meeting, WJO is now planning a second meeting.

    The project is focused on upgrading the main gathering centre at the Wafra field, which processes Eocene crude oil.

    WJO’s onshore operations cover an area of around 5,000 square kilometres in the Divided Zone.

    Saudi Arabian Chevron and Kuwait Gulf Oil Company are equal shareholders in WJO.

    Six major fields have been discovered in the WJO area to date: Wafra, South Fuwaris, South Umm-Gudair, Humma, Arq and North Wafra.

    The first discovery in this area was made in 1954, when the first well in the Wafra Field was drilled and completed.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15139837/main.png
    Wil Crisp
  • Egypt places fuel order for El-Dabaa nuclear plant

    21 November 2025

    Egypt’s government has signed a nuclear fuel purchase order for the first unit of the El-Dabaa nuclear power plant, which is expected to be operational in 2026.

    The fuel order was signed with Russia’s State Atomic Energy Corporation (Rosatom).

    The signing ceremony was attended by Egypt’s Prime Minister Mostafa Madbouli. It included senior officials from Egypt’s Ministry of Electricity & Renewable Energy and the Nuclear Power Plants Authority (NPPA).

    The agreement coincided with the installation of the VVER-1200 Generation III+ reactor pressure vessel for the project’s first unit.

    The El-Dabaa nuclear power plant will have four units, each capable of generating 1,200MW of electricity. The VVER-1200 Generation III+ reactor model has been selected for all four units.

    Egypt and Russia signed the initial inter-governmental agreement for the North African state’s first nuclear facility in November 2015.

    Rosatom, the project’s main contractor, announced that it started the production of electrical components in Saint Petersburg for a reactor vessel for the plant in June 2022.

    The two countries also agreed on broader cooperation covering nuclear technology, medical radioisotopes, technical applications such as 3D printing, and communications.

    El-Dabaa project status

    In September 2023, the Egyptian Nuclear & Radiological Regulation Authority (ENRRA) granted a construction permit for the plant’s fourth reactor. ENRRA granted the construction permit for unit three in March that year and units one and two in June 2022 and October 2022, respectively.

    In November 2022, South Korea’s Doosan Enerbility signed a contract valued at $1.2bn with state-owned South Korea Hydro & Nuclear Power (KHNP), a subsidiary of Korea Electric Power Corporation (Kepco), for the project.

    Rosatom subsidiary ASE earlier appointed KHNP as the single supplier for constructing the turbine islands.

    The simultaneous installation of the reactor pressure vessel and fuel order indicates that Unit 1 has transitioned from civil construction into the core mechanical and systems-installation phase.

    The latest advancements align with Egypt’s annual Nuclear Energy Day, observed on 19 November to mark the 2015 agreement that initiated the El-Dabaa project.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15132504/main37223922.jpg
    Mark Dowdall