EBRD providing US$ 22 million loan to new solar power plant in Jordan
December 12, 2017
Intensifying its support for Jordan’s solar power programme, the European Bank for Reconstruction and Development (EBRD) is extending a US$ 22 million loan for the construction and operation of a 50 MW photovoltaic (PV) plant in the Risha region, 300 km north-east of the capital, Amman.
The loan will be provided to Risha for Solar Power Projects PSC, a Jordanian company fully owned by the International Company for Water and Power Projects (ACWA Power). The EBRD loan is provided alongside parallel loans from the German Investment Corporation DEG and the Arab Bank, of US$ 16 million each. The Arab Bank is also holding the onshore accounts and security on behalf of the lenders.
The new plant will be located next to an existing 150 MW gas-fired power plant, owned and operated by CEGCO, the largest generator of electricity in Jordan and a subsidiary of ACWA Power. The gas-fired plant was constructed in 1984 and is nearing the end of its lifetime.
Harry Boyd-Carpenter, EBRD Director for Power and Energy, said: “This project will progressively replace the ageing gas-fired plant with a new solar installation generating the cheapest power in Jordan while using the existing transmission line. It is the eighth solar PV project financed by the EBRD in the country during the past four years, bringing the total installed capacity of power projects supported by the Bank in Jordan to more than 1,100 MW. It demonstrates what can be achieved in an environment where the regulatory framework, the tariff design and access to finance allow for the successful use of renewable sources of energy and is a powerful symbol of Jordan’s energy transition.”