A 200MW solar photovoltaic (PV) plant in Upper Egypt has secured a $27 million (£19.3m) loan by the African Development Bank (AfDB).

The $156 million (£111m) project, which will be located near the river Nile, is expected to reduce electricity costs, cut emissions and create new jobs.

The plant is forecast to cut greenhouse gas emissions by more than seven million tonnes of carbon dioxide over a 25-year period and create 800 new jobs during its construction phase.

Kevin Kariuki, AfDB’s Vice President for Power, Energy, Climate and Green Growth, said: “We are delighted to support this project that will deliver one of the lowest generation tariffs on the continent.

“The project supports Egypt’s energy transition and contributes towards the country’s achievement of its targeted 20% share of renewables by 2022.”