IFC finalizes $207.5 million financing for ground-breaking solar program in Jordan
The International Finance Corporation (IFC), a member of the World Bank Group, has finalized a US$207.5 million debt package to fund the construction of seven solar photovoltaic plants in Jordan.
The project is the largest private sector-led solar initiative in the Middle East and North Africa. IFC has tailored an innovative program to support the Jordanian government’s first phase of a planned total of 12 solar power plants, and will provide loans worth US$91.5 million from its own account. Another US$116 million will be mobilized from Arab Bank (Bahrain), European Arab Bank, the Dutch development bank FMO, FinnFund, and OPEC’s Fund for International Development.
The seven plants have a combined capacity of 102 MW, and will become Jordan’s first private industry-scale solar photovoltaic parks. They will generate 212 gigawatt hours each year of non-polluting, sustainable power and cut carbon dioxide emissions by 123,000 tons annually.
Mouayed Makhlouf, IFC Director for the Middle East and North Africa, stated:
This innovative project harnesses solar power to help Jordan meet its growing demand for energy in a cost-effective and eco-friendly way. In a region where demand for electricity is rising rapidly every year, it also demonstrates the importance of the private sector in increasing capacity and boosting global renewable energy generation.
Five of the parks will be built near the city of Ma`an in south-central Jordan, while the remaining two will be located near Aqaba in the south and near Mafraq in the north. The projects are being developed and built by various consortiums of Jordanian and international investors through seven independent private sector companies:
- Shamsuna Power Company (Aqaba),
- Falcon Ma`an for Solar Energy,
- Arabia One for Clean Energy Investments,
- Al Ward Al Joury for Energy Generation,
- Al Zahrat Al Salam for Energy Generation,
- Al Zanbaq for Energy Generation, and
- Jordan Solar One (Mafraq).
IFC is acting as a mandated lead arranger for all seven projects. Its specialized program is aimed at simplifying processes, reducing time and transaction costs for the projects.
