Hussein Thermal Power Station Repowering/Zarqa

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 47412

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

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

Project ID 47412

Status Repaying

Location

Jordan

Business Sector

Energy

Notice Type

Private

Environmental Category

Approval Date

19 Oct 2016

Disclosure date

20 Jul 2016

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

A senior project finance secured loan of USD 75 million to Zarqa Le Tawleed Al Takah Al Kahrabaieyah to finance the construction of a 485 MW combined cycle gas turbine (CCGT) power plant in Zarqa, 40 km north-east of Amman, Jordan (the Project). The Project will replace the now obsolete 351 MW Hussein Thermal Power Station (HTPS).

Project Objectives

The Project will provide vital energy capacity to Jordan and is of strategic importance for the energy security of the country.

Transition Impact

Setting standards for corporate governance and business conduct: The Project will replace the inefficient HTPS with modern CCGT technology, providing vital additional generating capacity to contribute to system stability and reliability of supply in Jordan. Plant efficiency is expected to double, leading to savings in fuel consumption and greenhouse gas emissions. Furthermore, the new plant will be primarily fired on gas, a cleaner fuel than the heavy fuel oil and light diesel oil used by the existing plant, thus resulting in reduced SO2 and particulate emissions as well. Finally, EBRD will also require that the existing HTPS be fully dismantled and any contaminated land be rehabilitated in line with best international practice.

More widespread private ownership: The Project will increase the volume of privately-owned generating capacity in Jordan, strengthening the role of the private sector in supplying energy to the Jordanian system. It will also increase the volume of generation that is paid for at full cost recovery levels.

Client Information

ACWA POWER

Zarqa Le Tawleed Al Takah Al Kahrabaieyah is a special purpose vehicle incorporated in Jordan for the sole purpose of developing, constructing and operating the Project. It is 100% owned by Red Sea Energy, an investment holding company based in Jordan. RSE is majority owned by ACWA Power International (ACWA Power) with a minority share owned by the International Finance Corporation (IFC).

EBRD Finance Summary

USD 75,000,000.00

EBRD and IFC will provide parallel loans of up to USD 75 million each. The remaining debt is expected to be provided by the commercial banks and IFIs.

Total Project Cost

USD 476,000,000.00

Total Project cost is expected to be in the range of USD 475 million.

Environmental and Social Summary

Category A (2014 ESP). In line with the EBRD's Environmental and Social Policy and Public Information Policy, the Project requires a fit-for-purpose Environmental and Social Impact Assessment (ESIA) to be disclosed for 60 days prior to EBRD board consideration.

An independent consultant was retained on behalf of the EBRD and the IFC to undertaken an Environmental and Social Due Diligence (ESDD) of the Project, which included the assessment of ACWA's Environmental and Social (E&S) policies, procedures, and practices against the EBRD's Performance Requirements (PRs) and IFC's Performance Standards.

The ESDD has confirmed that ACWA has the capacity to fully implement the Bank's Performance Requirements and has a good and robust environment, health and safety (EHS) management system and the Project is structured to comply with the Bank's Performance Requirements (PRs).

The ESDD also confirmed that the new CCGT plant is designed to meet good industry standards and European Union's Best Available Techniques (BAT) as defined under the Industrial Emission Directive (IED), incorporating safe operating feature. The ESDD concluded that the project is structured to comply with the Bank's Environmental and Social Policy and relevant PRs. Based on the ESDD, an Environmental and Social Action Plan (ESAP) has been developed and agreed with the company. This allows the Project and future operations to be structured to comply with the Bank's performance requirements as well as EU environmental standards in addition to IFC's Performance Standards. An ESIA is available for this Project.

Update March 2018. The plant construction is on schedule and is to be commissioned in the summer 2018. To date the Company has been implementing the agreed ESAP. Monitoring has been undertaken by the Lenders in 1Q 2018 and some issued identified, albeit these have been minor. Appropriate corrective actions are being undertaken to ensure on-going compliance with the relevant PRs and PSs. The Bank, together with the other Lenders will continue to monitor and undertake a monitoring mission during commissioning phase of the Project.

Technical Cooperation

None.

Company Contact Information

Ali Ayub
AAyub@acwapower.com
+ 971 4 5091 045
http://acwapower.com/
ACWA Power International 22nd Floor, Nassima Tower Sheikh Zayed Road P.O. Box 30582, Dubai
United Arab Emirates

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 47412

Status Repaying

Location

Jordan

Environmental Category

Disclosure date

18 Jul 2016

Project description

The EBRD is considering providing a senior project finance secured loan of USD 75 million to Zarqa Le Tawleed Al Takah Al Kahrabaieyah to finance the construction of a 485 MW combined cycle gas turbine (CCGT) power plant in Zarqa, 40 km north-east of Amman, Jordan (the Project). The Project will replace the now obsolete 351 MW Hussein Thermal Power Station (HTPS). The Project will provide vital energy capacity to Jordan and is of strategic importance for the energy security of the country.

The Project will support Jordan in increasing its electricity generation capacity and install state of the art technology that meetings EU environmental standards and Best Available Techniques (BAT).

ESIA disclosure package

ESIA: English Vol 2 | 3 | 4 Arabic Vol 2 | 3 | 4
Non-technical summary: English | Arabic
Stakeholder Engagement Plan: English | Arabic
Environmental and Social Action Plan: English | Arabic

Full ESIA availability

Full ESIA documentation is available locally at:

Mahatat Al Zarqa Le Tawleed Al Takah Al Kahrabaieyaha
Al Hakam Bin Amr St 22, 11953, Amman, Jordan (CEGCO office),
Phone: +962 5 3811200
Mobile : +962 79 1047184
P.O.Box 633, 1311

Contact Person: Mr. Adel Ayyoub, HSE Manager: Email: a_ayyoub@cegco.com.jo

Zarqa Power Plant Project, PO BOX 633
13110 Zarqa Jordan
Contact: Mehmet Yilidz, Project Director
Myildiz@acwapower.com ; Tel: + 9627900965 28

Also available at:

Ministry of Environment (MoEnv)
Location: Amman – Um Uthaina – King Faisal bin Abdul Aziz Street – Building No. 83
P.O. Box: 1408
Postal Code: 11941
City: Amman

Phone: 962 6 5560113
Fax: 962 6 5560288
Email address: info@moenv.gov.jo

And

EBRD Amman Resident Office:
Emmar Towers,
196 Zahran Street,
15th Floor
P.O. Box 852805
Amman 11185
Jordan

Tel: +962 6 563 50 30
Fax: +962 6 563 50 49

And

http://acwapower.com/project/zarqa-thermal-power-project/

Enquiries

General enquiries

Mahatat al Zarqa Le Tawleed Al Takah Al Kahrabaieyah
Al-Khalideen Suburb
Al-Hakam Bin Amro Street, Bld. N22
PO Box 2564 Amman 11953
Jordan

ACWA Power International
22nd Floor, Nassima Tower
Sheikh Zayed Road
P.O. Box 30582, Dubai
United Arab Emirates

Attention: Ali Ayub
ACWA Power International
Acquisitions and Project Finance - Director
Office: + 971 4 5091 045
Mobile: + 971 56 5026 062
AAyub@acwapower.com

Environmental and social enquiries

Contact Person: Mr. Adel Ayyoub, HSE Manager
Mahatat Al Zarqa Le Tawleed Al Takah Al Kahrabaieyaha
P.O.Box 633, 13110
Al Hakam Bin Amr St 22, 11953, Amman, Jordan (CEGCO office),
Email: a_ayyoub@cegco.com.jo
Phone: +962 5 3811200
Mobile : +962 79 1047184

Mehmet Yilidz, Project Director
Zarqa Power Plant Project, 13110 Zarqa Jordan
Tel: + 9627900965 28
Myildiz@acwapower.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.

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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Hussein Thermal Power Station Repowering/Zarqa

Project timeline

Translated version of this PSD: Arabic

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Environmental and Social Summary

Technical Cooperation

Company Contact Information

Transition impact

PSD last updated

Business opportunities

General enquiries

Public Information Policy (PIP)

Project description

ESIA disclosure package

Full ESIA availability

Enquiries