NEPCO: Liquidity facility

Location:

Jordan

Project number:

52010

Business sector:

Energy

Notice type:

State

Environmental category:

B

Approval date:

21 Oct 2020

Status:

Approved

PSD disclosed:

30 Apr 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

Provision of a sovereign guaranteed loan to the National Electric Power Company (NEPCO) to assist NEPCO in preserving the stability of the electrical system and manage its liquidity constraints resulting from the ongoing COVID-19 crisis.

Project Objectives

The proceeds of the Bank's loan will be used to provide urgent liquidity support to NEPCO to meet its short-term payment obligations. The project is developed under the Vital Infrastructure Support Programme (VISP) which is part of the EBRD COVID-19 Solidarity Package.

Transition Impact

ETI score: 60

The loan will contribute to the Resilient quality by providing liquidity support to NEPCO to help the company go through the COVID-19 crisis. The loan will also contribute to the Inclusive quality, as it will be accompanied with a support targeting NEPCO's human resources to ensure that NEPCO can offer its staff adequate tools and the right skills to navigate through a crisis and is well equipped to respond to shocks.

Client Information

NATIONAL ELECTRIC POWER COMPANY

JORDAN SOVEREIGN i National Electric Power Company (NEPCO) guaranteed by the Hashemite Kingdom of Jordan.

NEPCO is a 100% state-owned central entity in the Jordanian electricity system acting as single buyer of fuel for the purposes of electricity generation, single buyer of electricity, and transmission system operator.

EBRD Finance Summary

USD 100,000,000.00

Up to USD 100 million sovereign guaranteed loan to NEPCO.

Total Project Cost

USD 100,000,000.00

USD 100 million.

Up to USD 100 million of the proceeds will be applied to NEPCO's short-term needs.

Additionality

EBRD financing will contribute to bridging a financing gap created by the current adverse market conditions (Crisis response). While EBRD investment is needed to close the funding gap, it will not crowd out other sources, such as from IFIs, government, commercial banks, and instead will complement them.

Environmental and Social Summary

Categorised B (ESP 2019). E&S impacts/risks associated with the provision of liquidity are low since the project does not include a CAPEX component. NEPCO is an existing client of the Bank, and was subject to a thorough Environmental and Social Due Diligence in 2018. Environmental and Social (E&S) due diligence will be undertaken in-house and will include a review of the implementation progress of the agreed ESAP by the Client, as well as an update regarding their labour provisions and COVID-19 response plan.

Technical Cooperation and Grant Financing

Technical assistance will be provided to the company for the purposes of:

1)     Internal Audit Function: improve NEPCO's internal audit function, including risk mapping, risk assessment, annual audit programmes, as well as co-sourcing and capacity building.

2)     Human resources: ensure that NEPCO is equipped to deal with shocks such as the one currently experienced, while providing its staff adequate tools, training and protection.

Company Contact Information

Maysoon Rawabdeh
mrawabdeh@nepco.com.jo
+96265858615
www.nepco.com.jo
National Electric Power Company 275 Zahran Street P. O. Box 2310 Amman 11181 # Jordan

PSD last updated

30 Apr 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by emailmail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requesters’ identities may be kept confidential, upon request.

 

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