ACWA Power signs 25 year PPA for the 485 MW Hussein CCGT IPP

ACWA Power has signed a 25 year Power Purchase Agreement with Jordan's National Electric Power Company for the 485 MW Hussein CCGT IPP.

The plant will be located in Zarqa Industrial Area (40KM north-east of Amman) and will replace Jordan’s first thermal power station –  the Hussein Thermal Power Station, which has been operating since 1975 and has recently been decommissioned.

The project, with a total investment cost of c.US$ 460 million, uses GE Energy’s 9E turbines and runs on Natural gas as the primary fuel, and Light Diesel Oil as the secondary fuel.

Shandong Electric Power Construction Corporation III (SEPCO III) will be the EPC contractor for the project, while the O&M will be undertaken by Central Electricity Generating Company (CEGCO) of Jordan.

Paddy Padmanathan, President and CEO of ACWA Power, said:

“Hussein CCGT IPP is an important project for ACWA Power in Jordan. This transaction goes a long way in demonstrating our commitment to the socio-economic development of Jordan and in supporting NEPCO through provision of electricity reliably at the lowest possible cost in Jordan. The government of Jordan is to be commended on its approach to stimulating private investment in the energy sector and for ensuring that adequate new capacity is brought to line to feed growing social needs and economic activity.”

Thamer Al Shahran, Managing Director of ACWA Power, said:

“We are pleased to build up on our presence as one of Jordan’s largest power generators (through CEGCO), in supporting Jordan’s increasing demand for power and a balanced fuel mix by rehabilitating Hussein with a much more efficient plant and more importantly ensuring that there was no effective loss in jobs due to the decommissioning of the old plant.

Rajit Nanda, Chief Investment Officer of ACWA Power said:

“We are proud to have offered an extremely competitive solution to NEPCO with a tariff that is among the lowest witnessed in Jordan’s conventional power sector in the last decade.  This transaction is yet another example where we could successfully push the envelope in order to offer the best value for money solution to our offtakers.”