IFC and MIGA, members of the World Bank Group, are backing the design, construction, ownership and operation of a the 485 MW Zarqa gas-fired power plant in Jordan. Once operational, the plant will generate power at about a third of the current average cost in Jordan.
IFC is investing up to US$75 million in the combined cycle plant, located in the Zarqa Industrial Zone, and mobilizing US$200 million of debt, alongside a consortium of lenders. MIGA is providing a guarantee for 20 years, covering up to $215.6 million in commercial debt..
MIGA’s guarantee provides coverage to the issuers of commercial debt for the project, Industrial and Commercial Bank of China Ltd and China Construction Bank Corporation Limited, against the risks of Transfer Restriction, Expropriation, War and Civil Disturbance and Breach of Contract.
The project is being developed by ACWA Power, at a cost of about US$485 million. It will replace one of the country’s oldest and least efficient fuel oil-fired power plants, which is currently being decommissioned, with one of Jordan’s most energy-efficient, eco-friendly gas-fired power plants.
Rajit Nanda, ACWA Power’s Chief Investment Officer, said:
“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.”
Mouayed Makhlouf, IFC Director for the Middle East and North Africa, said:
“IFC is a long-term partner for Jordan. We invested in the power generation sector in 2011 to, among other things, modernize 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.”