Members of the World Bank Group, International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA), are set to finance Acwa Power’s gas project in Jordan, Middle East.
The financing will cover the design, construction, ownership and operation of a 485MW gas-fired power plant, aimed at increasing the country’s power generation capacity, Trade Arabia reported.
According to media, once operational, the plant will generate power at about a third of the current average cost in the Arabic country.
IFC is said to be investing up to $75 million in the combined cycle plant, located in the Zarqa Industrial Zone, and mobilising $200 million of debt, alongside a consortium of lenders.
Meanwhile, MIGA is to provide a guarantee for 20 years, covering up to $215.6 million in commercial debt (principle and interest).
Eco-friendly gas-fired power plants
It is reported that the project, will replace one of the country’s oldest plants, which is currently being decommissioned, with one of Jordan’s most energy-efficient.
“This will be a climate-friendly addition to Jordan’s power supply, with the use of combined cycle gas turbine technology helping to significantly reduce greenhouse gas (GHG) emissions, particularly compared to the plant it replaces,” Rajit Nanda, Acwa Power’s chief investment officer, said.
The Zarqa plant is expected to generate a gross average of 3,200 gigawatt hours of electricity per year, serving approximately 620,000 individual residential customers annually and adding about 150MW to the national grid.
World Bank units modernise existing infrastructure
Mouayed Makhlouf, IFC director for the Middle East and North Africa commented: “IFC is a long-term partner for Jordan.We invested in the power generation sector in 2011 to, among other things, [to] modernise older power plants using existing infrastructure, where possible.
“We are excited to see our long-term goal fulfilled, as the Zarqa plant will use the same site as the Hussein thermal power station, benefiting from existing infrastructure and a prime location near Amman and Zarqa.”
Sarvesh Suri, director of operations at MIGA said: “The demand for power in Jordan is rising rapidly. Among the best ways to meet this demand is modernizing Jordan’s power generation infrastructure.”