Amman, Jordan, November 27, 2013—IFC,
a member of the World Bank Group, has finalized a $221 million debt package
to support the development of a pioneering wind farm in Jordan, part of
an effort boost the country's supply of renewable energy and encourage
The support from IFC will help the Jordan Wind Project Company build a
117-megawatt plant in the southern governorate of Tafila. IFC, the lead
arranger on the project, provided $69 million in loans and helped directly
mobilize another $79 million from other lenders. The wind farm will be
the country’s first privately-owned renewable energy facility. It will
help boost power supplies in Jordan, where demand for electricity is increasing
at about 8 percent annually. It is also expected to help curb greenhouse
gas emissions, lessen Jordan's reliance on imported fossil fuels, and set
a precedent for future investments in renewable energy.
The Jordan Wind Project Company a special purpose vehicle owned by sponsors
the Euro-Mediterranean fund InfraMed, Masdar of Abu Dhabi and EP Global
Energy of Cyprus. The Tafila wind farm is expected to produce electricity
at a price up to 25 percent less than that of thermal power while avoiding
the emission of 224,000 tons of carbon dioxide annually.
"With fossil fuels becoming increasingly expensive, and the specter
of climate change looming, it is important for countries like Jordan to
harness renewable energy," said Mouayed Makhlouf, IFC Director for
the Middle East and North Africa. "At the same time, it is vital for
lenders to support the sector, and this project will help demonstrate its
The investment is part of an IFC effort to increase the use of renewable
energy in the Middle East and North Africa, where abundant sunshine and
strong winds make it a natural fit.
Jordan has made strong progress in the renewable energy field, developing
several solar and wind power projects while aiming to have renewables account
for 10 percent of electricity generation by 2020. The Tafila wind farm
is the first of these projects to reach financial close. It is expected
to set an important precedent for further investments in the sector, and
help establish Jordan as an important new destination for renewable energy
investment in the Middle East.
Eksport Kredit Fonden, the European Investment Bank, FMO, the OPEC Fund
for International Development, and Europe Arab Bank also participated in
financing the project.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit