EBRD provides debt financing for 45 MW wind project in Jordan
The European Bank for Reconstruction and Development (EBRD) is providing a US$52 million loan for the construction and operation of a 45 MW wind farm in the Shobak region of Jordan, 160 km south of the capital, Amman.
The loan will be provided to Shobak Wind Energy PSC, a company majority-owned by Alcazar Energy Partners, a UAE-based independent developer active in the Middle East, Africa and Turkey. Alcazar Energy is developing the project in partnership with Hecate Energy LLC, a US-based developer.
The EBRD’s loan is split between an A loan provided on the Bank’s own account for US$26 million and a B loan funded by the Europe Arab Bank (EAB) for the same amount. The Islamic Corporation for the Development of the Private Sector (ICD) has also provided a parallel tranche of Islamic finance totalling US$26 million alongside the EBRD’s loan.
The Shobak wind farm is the second wind farm to be financed by the EBRD under Jordan’s first round of its programme of private utility-scale wind projects. It is the ninth renewable project financed by the EBRD in Jordan and brings the cumulative installed capacity of renewable projects supported by the Bank to 350 MW.
Funding this farm, the EBRD aims to develop Jordan’s wind resources to deliver much-needed generating capacity, reducing the country’s import dependence and lowering the carbon intensity of the power sector.
Jordan became an EBRD country of operations in 2012. To date, the EBRD has committed over US$1 billion to 40 projects in Jordan, of which 11 are in the power and energy sector.
Harry Boyd-Carpenter, EBRD Director for Power and Energy, said:
“We are delighted to support Alcazar Energy Partners again and to collaborate with our co-financiers, the Islamic Corporation for the Development for the Private Sector and Europe Arab Bank to bring cleaner, more reliable generating capacity to Jordan. This is another example of how well-designed regulatory frameworks are allowing countries across the region to shift rapidly from reliance on hydrocarbons to energy sources that are sustainable, affordable and secure.”
Daniel Calderon, co-founder and CEO of Alcazar Energy, said:
“The Shobak project is another significant milestone for our company in building a sustainable portfolio of assets. By early next year when construction starts on Shobak, our portfolio will comprise seven projects in construction or operation in the region. We appreciate the continued support of the government of Jordan, our lenders and investors. Shobak is further strengthening our relationship with the EBRD and the Arab Bank group who have both been supporting our company from its early years.”
