EBRD offers $54m loan for solar power in Jordan

The European Bank for Reconstruction and Development (EBRD) will be providing a $54m A/B loan to The Local Company for Water and Solar Energy Projects PSC, a subsidiary of ACWA, for the construction of the ACWA Power Mafraq Photovoltaic Independent Power Plant in Jordan.

ACWA Power is an international company which develops and operates power generation and desalination plants in the Middle East.

ACWA Power chief investment officer Rajit Nanda said:  “This is an important project for ACWA Power in Jordan. It strengthens our presence as one of Jordan’s largest power generators (through CEGCO, and the ACWA Power Zarqa - which is nearing execution) and is yet another demonstration of our commitment to the country.

“The partnership with the EBRD for funding this project has been a critical component in helping us support NEPCO by providing record low tariffs for renewable energy in Jordan.”

The 60.3MW photovoltaic (PV) power plant will be built at the King Hussein Bin Talal development area of the Mafraq region in north Jordan.

The financing structure for the power plant includes an A loan from the EBRD of $27m and a B loan of the same amount from the Netherlands Development Finance Company.

EBRD Power and Energy director Nandita Parshad said: “We are very pleased to be partnering with our existing client ACWA Power to deliver this landmark transaction.

“It will provide electricity at a highly competitive price and supports the government’s goals of meeting rapid demand growth while improving the sustainability and affordability of electricity in Jordan.”

This is the sixth renewable project in Jordan that has received financial assistance from EBRD, which brings the total capacity of projects financed by the Bank in the country to more than 400 MW.

Image: EBRD offers $54m loan for solar power in Jordan. Photo: courtesy of European Bank for Reconstruction and Development.