Scatec Solar secures USD 100 million project financing for solar power plants in Jordan

Scatec Solar ASA (SSO) and its partners have entered into financing agreements totaling US$100 million for the development and construction of three solar power plant projects in Jordan.

The projects have a combined capacity of 43 MW and total investments are estimated to US$135 million.

The debt financing will be provided by the European Bank for Reconstruction and Development (EBRD) and the French development agency Société de Promotion et de Participation pour la Coopération Economique (Proparco).

The projects have been developed jointly by Scatec Solar and its Jordanian partners, Quest Energy Investment LLC, European Jordanian Renewable Energy Projects LLC and Greenland Alternative Energy LLC. Scatec Solar will construct the plants and in addition provide operation and maintenance services when the plants are finalized and in operation.

Annual production from the three plant is estimated to 104,000 MWh, generating revenues of some US$17 million per year. The electricity produced will be sold under a 20-year power purchase agreement with the National Electric Power Company (Nepco). All plants are located in the area nearby Ma'an City in southern Jordan.

CEO Raymond Carlsen in Scatec Solar commented:

"Securing financing for the Jordanian projects is an important milestone for Scatec Solar, and an important contribution to meet our ambition of continued strong growth as an independent solar power producer. I am pleased to see that our approach to team up with local partners and strong finance institutions bring about such great results."

Scatec Solar will own 70 percent of the 10 MW Oryx plant and 40 percent of the two other plants totaling 33 MW capacity.

Completion of the plants is scheduled for the second half of 2015.