IPP4 Al-Manakher Power Project

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 44284

Status Repaying

Location

Jordan

Business Sector

Energy

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 44284

Status Repaying

Location

Jordan

Business Sector

Energy

Notice Type

Private

Environmental Category

Approval Date

17 Oct 2012

Disclosure date

24 Aug 2012

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Translated version of this PSD: Arabic

Project Description

The EBRD is considering providing a senior loan of up to US$ 100 million to fund the development of a 240MW peaking power plant, 15 km east of Amman in Jordan (the “Project”). The Project is urgently required to ensure the quality and security of electricity supply in Jordan and to prepare the grid for future deployment of large quantities of intermittent renewable energy. The Project is being developed as the result of a competitive tender by the government of Jordan and will be implemented on a build, own, operate basis. All output will be sold to the National Electric Power Company.

Transition Impact

The Project’s transition impact stems from three factors:

(i) creation of an enabling environment for Jordan's transition towards a sustainable, low carbon economy through the provision of flexible, responsive backup capacity necessary to prepare the grid for installation of intermittent renewables;

(ii) contribution to the development and growth of the Jordanian economy through the provision of a stable, high quality supply of electricity; and

(iii) more widespread private ownership by supporting a privately sponsored and competitively tendered project.

The Client

The client is AES Levant Holding BV Jordan PSC (the “Company”), a special purpose vehicle incorporated in Jordan for the purpose of building, owning and operating the Project. The client is ultimately owned 60% by AES Corporation (AES) and 40% by Mitsui and Co. Ltd. AES is a global power company headquartered in the US with operations in 27 countries and Mitsui is a Japanese public company and one of the world’s largest conglomerates.

EBRD Finance

A secured limited recourse loan of up to US$ 100 million.

The remainder of the required funding is expected to come from a mixture of debt financing from the US Overseas Private Investment Corporation and Sponsors’ equity/shareholder loans.

Project Cost

US$ 360 million.

Environmental Impact

Categorisation

The Project has been categorised A. Consistent with the Bank’s 2008 Environmental and Social Policy, an Environmental and Social Impact Assessment (ESIA) and associated documentation (Stakeholder Engagement Plan (SEP), Non-Technical Summary (NTS), and Environmental and Social Mitigation and Monitoring Programme (ESMMP)) have been prepared and disclosed to the public for review and comments. The ESIA, an Executive Summary, and a previous version of the ESMMP have previously been disclosed by the Overseas Private Investment Corporation (OPIC).

Due diligence undertaken and outcomes

The Bank’s Environmental and Social Due Diligence (ESDD) is being conducted in collaboration with OPIC, which is also considering providing financing for the Project. An independent consultant has also been appointed to support the ESDD process. Due diligence has included visits to the site by environmental and social specialists and reviews of the ESIA documentation, including the draft Environmental and Social Mitigation and Monitoring Programme.

The independent consultant has confirmed that the project is structured to comply with environmental and social requirements of Jordanian law and of the World Bank/International Finance Corporation. However, the Project will not fully meet the EU Industrial Emission Directive Emission Value Levels for NOx emissions by new plants constructed from 2012 onwards. Therefore, derogation from the EBRD 2008 Environmental and Social Policy is required for this element of the Project. The on-going ESDD is seeking to verify that the Project would not have adverse public health impacts notwithstanding that air emissions may be higher than allowed for new plants under EU requirements.

The SEP, NTS, and ESMMP are available in English and Arabic. In addition, paper copies of these documents and the ESIA in Arabic have been disclosed locally at locations specified in the SEP and on EBRD’s website. The ESIA package is available for public review and comment for at least 60 days prior to consideration by the EBRD Board. Before the end of the disclosure period, public meetings will be held in the nearby village of Al-Manakher to receive comments.

The Bank will closely monitor project implementation and will undertake additional site visits during the construction and future operation of the project.

There is an Environmental and Social Impact Assessment available for this project.

Technical Cooperation

None.

Company Contact

Mr. Feras Mohammad Hammad
Amman East Power Plant,
Al Madhonna St – Al Mankher Village,
P.O. Box 3099,
Amman 11181, Jordan

Telephone: +962 6 4293200
Mobile: +962 7 96401352
E-mail address: feras.hammad@aes.com

Transition impact

ETI Score:60

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project ID 44284

Status Repaying

Location

Jordan

Environmental Category

Disclosure date

15 Aug 2012

Purpose of the Environmental and Social Impact Assessments

The construction and operation of a 240MW peaking power plant, 15 km east of Amman in Jordan (the “Project”). The Project is urgently required to ensure the quality and security of electricity supply in Jordan and to prepare the grid for future deployment of large quantities of intermittent renewable energy. The Project is being developed as the result of a competitive tender by the government of Jordan and will be implemented on a build, own, operate basis. All output will be sold to the National Electric Power Company.

There is a project summary document available for this project.

ESIA Summary

Non-Technical Summary (NTS): Arabic (350KB - PDF) English (329KB - PDF)

Stakeholder Engagement Plan (SEP): Arabic (324KB - PDF) English (388KB - PDF)

Environmental and Social Mitigation and Monitoring Programme (EMMP):
Arabic (1MB - PDF) English (834KB - PDF)

Full ESIA availability

Full ESIA documentation is available locally at:
EBRD Headquarters in London, environmentandsocial@ebrd.com

And

Sponsor’s local office

Amman East Power Plant
Al Madhonna St – Al Mankher Village
P.O. Box 3099
Amman 11181

Telephone: +962 6 4293200
E-mail address: feras.hammad@aes.com

Local community

Al-Manakher Preliminary School
Al-Manakher village,
Sahab, Amman, Jordan

EBRD Temporary Resident Office

Regus Financial District,
Al Husari Street,
Shmeisani, P.O.Box 940584,
Amman 11194,
Jordan

Tel: +962 6 5007373
Fax: +962 6 5007300

Enquiries

Mr. Feras Mohammad Hammad,
Amman East Power Plant
Al Madhonna St – Al Mankher Village
P.O. Box 3099
Amman 11181

Telephone: +962 6 4293200
Mobile: +962 7 96401352
E-mail address: feras.hammad@aes.com

This document was prepared at an early stage of project development, before consideration by the EBRD Board of Directors. Details of a project may change following disclosure.

Environmental and Social Impact Assessments and ESIA summaries are produced by project sponsors, and the EBRD makes them available without any comment or implied endorsement. Any views expressed or statements made in the Environmental and Social Impact Assessment or the ESIA Summary do not necessarily reflect the views or opinions of the EBRD.

Last updated 25 June 2014

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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IPP4 Al-Manakher Power Project

Project timeline

Translated version of this PSD: Arabic

Project Description

Transition Impact

The Client

EBRD Finance

Project Cost

Environmental Impact

Technical Cooperation

Company Contact

Transition impact

PSD last updated

Business opportunities

General enquiries

Public Information Policy (PIP)

Purpose of the Environmental and Social Impact Assessments

ESIA Summary

Full ESIA availability

Enquiries