Translated version of this PSD: Arabic
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.
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.
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
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
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.
Company Contact Information
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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