Amman, Jordan, November 6, 2018—IFC,
a member of the World Bank Group, has arranged a pioneering financing package
of up to $80 million to fund the construction of a new wind power plant
in Jordan, near the town of Tafila, the latest in a series of efforts to
boost renewable energy development in the country.
The 51.75-megawatt Abour Wind Farm in southern Jordan is being built by
Abour Energy Company, which is a joint venture between Xenel International
and AMEA Power. The financing package includes a $28 million loan for IFC’s
own account, as well as mobilized parallel loans from the Islamic Development
Bank. IFC structured the transaction as an Islamic Finance Ijara transaction,
its first in the renewable energy sector in the Middle East and North Africa.
IFC also provided the swaps for the financing package.
“As energy demand in Jordan continues to rise, there is an urgent need
to ensure new sources of power,” said Emran Mohammed Alireza, director
at Xenel International. “After developing 373 megawatts of conventional
power in the country, Xenel continues to demonstrate its commitment to
Jordan by developing, along with its partner AMEA, the Abour Wind Farm,
which will add to the country’s renewable capacity, help enhance energy
security, and help make electricity cheaper for consumers.”
Amjad Rawashdeh, director general of Jordan’s National Electric Power
Company, said: “Our focus is to continue to diversify energy sources.
IFC’s work and investment has been crucial in helping the development
of the renewables in the country. We look forward to continuing this work.”
During the last two decades, the World Bank Group has played a key role
in Jordan’s energy sector, aiding its unbundling and subsequent privatization
through regulatory and financing support. IFC has also invested more than
$300 million to support clean energy options in the country, enabling well
over $1 billion in private sector investments in Jordan’s power distribution
and generation sectors, including solar power.
“Jordan’s energy sector has been on a steady path of reform. Supporting
renewable energy projects and opening the sector to private investments
is a pillar of our work in Jordan and the region,” said Mouayed Makhlouf,
IFC Director for the Middle East and North Africa. "We will continue
to support the sector, replicating the scale achieved in solar and mobilizing
new sources of private sector capital.”
IFC is also leading industry efforts to reduce the risks that wind farms
can pose to birds in the flyway above Jordan – an important migratory
path for many bird species. IFC engages different stakeholders, including
multiple private operators of wind projects in the area, to assess potential
negative impacts on biodiversity on a region-wide basis and agree on coordinated
measures to mitigate them.
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In fiscal year 2018, we delivered more
than $23 billion in long-term financing for developing countries, leveraging
the power of the private sector to end extreme poverty and boost shared
prosperity. For more information, visit www.ifc.org