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.
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.
ETI score: 65
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.
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
Up to USD 100 million sovereign guaranteed loan to NEPCO.
Total Project Cost
USD 100 million.
Up to USD 100 million of the proceeds will be applied to NEPCO's short-term needs.
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
National Electric Power Company 275 Zahran Street P. O. Box 2310 Amman 11181 # Jordan
PSD last updated
30 Apr 2020
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More information on the EBRD’s practices in this regard is set out in the ESP.
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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.
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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).
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