Amman, (Petra) -- The European
Bank for Reconstruction and Development
(EBRD) said it will extend a $22 million-loan
for the construction and operation of
a 50-MW photovoltaic (PV) plant in the
Risha region, 300 km north-east of 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 $16 million each.
The Arab Bank is also holding the onshore
accounts and security on behalf of the
The new plant will be located
next to an existing 150 MW gas-fired power
plant, owned and operated by the Central
Electricity Generating Company (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.
EBRD Director for Power
and Energy, Harry Boyd-Carpenter, 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," the EBRD
He pointed out that the
loan 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.
Chief Investment Officer
of ACWA Power, Rajit Nanda, said: "The
Risha PV independent power producer (IPP)
project makes us one of Jordan’s
largest power generators (through the
CEGCO, ACWA Power Zarqa and Mafraq PV
IPPs), and is yet another demonstration
of our commitment to the country."
"We are also proud
to be associated with the EBRD in Jordan,
building our continuing partnership, as
the bank supports the development of renewable
energy in the Middle East and North Africa
region," he noted.
Nanda added that "the
partnership with the EBRD for funding
this project has been critical in helping
us to support NEPCO by providing record
low tariffs for renewable energy in Jordan."
This week the EBRD also
signed financing agreements for the Shobak
wind project. Including the 50 MW Al Safawi
solar plant, signed in September, the
EBRD has financed 145 MW of renewable
generating capacity in Jordan during 2017
Since starting operations
in the country in 2012, the EBRD has financed
more than 1.1 GW of generating capacity
across 12 projects.
Jordan became an EBRD country
of operations in 2012. To date, the bank
has committed over $1 billion to 41 projects
ACWA Power is a developer,
investor and operator of a portfolio of
power generation plants and desalinated
water production plants, currently with
a presence in 10 countries including in
the Middle East and North Africa, Southern
Africa and South-East Asia regions.