Amman, Jordan, October 15, 2014—IFC,
a member of the World Bank Group, has finalized a $207.5 million debt package
to fund the construction of seven solar photovoltaic plants that will boost
Jordan’s use of renewables and help transform its energy sector.
The project is the largest private sector-led solar initiative in the Middle
East and North Africa. IFC has tailored an innovative program to support
the Jordanian government’s first phase of a planned total of 12 solar
power plants, and will provide loans worth $91.5 million from its own account.
Another $116 million will be mobilized from Arab Bank (Bahrain), Europe
Arab Bank, the Dutch development bank FMO, FinnFund, and OPEC’s Fund for
The seven plants have a combined capacity of 102 megawatts, and will become
Jordan’s first private industry-scale solar photovoltaic parks. They will
generate 212 gigawatt hours each year of non-polluting, sustainable power
and cut carbon dioxide emissions by 123,000 tons annually.
“This innovative project harnesses solar power to help Jordan meet its
growing demand for energy in a cost-effective and eco-friendly way,” said
Mouayed Makhlouf, IFC Director for the Middle East and North Africa. “In
a region where demand for electricity is rising rapidly every year, it
also demonstrates the importance of the private sector in increasing capacity
and boosting global renewable energy generation.”
Five of the parks will be built near the city of Ma`an in south-central
Jordan, while the remaining two will be located near Aqaba in the south
and near Mafraq in the north. The projects are being developed and built
by various consortiums of Jordanian and international investors through
seven independent private sector companies:
· Shamsuna Power Company (Aqaba),
· Falcon Ma`an for Solar Energy,
· Arabia One for Clean Energy Investments,
· Al Ward Al Joury for Energy Generation,
· Al Zahrat Al Salam for Energy Generation,
· Al Zanbaq for Energy Generation, and
· Jordan Solar One (Mafraq).
IFC is acting as a mandated lead arranger for all seven projects. Its specialized
program is aimed at simplifying processes, reducing time and transaction
costs for the projects.
The solar projects follow IFC’s $221 million financing for Jordan’s 117-megawatt
wind farm in 2013, and are a part of a broader strategy to help boost power
supplies in Jordan, where electricity demand is increasing by 8 percent
every year. The new solar plants will also reduce Jordan's reliance on
imported fossil fuels.
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 about 100 countries, we use our capital, expertise, and
influence to help eliminate extreme poverty and boost shared prosperity.
In FY14, we provided more than $22 billion in financing to improve lives
in developing countries and tackle the most urgent challenges of development.
For more information, visit www.ifc.org.