NEPCO Northern Green Substation

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Provision of a sovereign guaranteed loan to the National Electric Power Company (NEPCO) to finance the construction of a 400/132/33kV high voltage transmission substation in the North-Eastern part of Jordan, which will help in improving the grid's capacity to absorb existing and new renewable energy projects.

Project ID 53334

Status Signed

Location

Jordan

Business Sector

Energy

Notice Type

State

Project timeline

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

Company Contact Information

Muna Attiyat
info@nepco.com.jo
+962 6 5858615
+962 6 5818336
www.nepco.com.jo

Project ID 53334

Status Signed

Location

Jordan

Business Sector

Energy

Notice Type

State

Environmental Category

Approval Date

09 Oct 2024

Disclosure date

31 Aug 2022

Project description

Project objectives

The proceeds of the Bank's loan will be used by NEPCO to finance a 400/132/33kV substation to help (i) improve the absorption capacity of existing and planned renewable energy projects, (ii) increased dispatching flexibility, (iii) reinforce the North-Eastern high voltage electricity network; and (iv) facilitate network interconnection to neighbouring countries.

Transition impact

ETI Score:71

project will contribute to the Green and Inclusive transition qualities through a combination of capital investments and technical cooperation.

Specifically, the project will:

1) Promote the use of renewable energy sources, strengthen energy security through diversification of energy supplies and energy market integration;

2) Reduce transmission losses by improving power flow within the national network, leading to further emission reductions;

3) Promote human capital development in the green energy field by introducing a new training programme for NEPCO's Electrical Training Centre to respond to the market's need for digital skills and energy efficiency competences;

4) Support the design of National Occupational Skills Standards that will identify and codify the necessary skills and competencies for in-demand occupations in the sector.

Client information

NATIONAL ELECTRIC POWER COMPANY

JORDAN SOVEREIGN - 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 transmission system owner and operator, dispatcher, single wholesale buyer of electricity and single buyer of fuel and natural gas for conventional generation.

EBRD Finance Summary

USD 28,250,000.00

Up to USD 28.25 million sovereign guaranteed loan to NEPCO. The Project is expected to be co-financed with an investment grant made available by other partners that will contribute towards the financing of the overall Project costs.

Total project cost

USD 35,000,000.00

Additionality

Financing structure: EBRD offers long-term financing at terms not available in the local market.

Knowledge, innovation, and capacity building: EBRD provides expertise, innovation, knowledge and capabilities that are material to realise the Project's objectives, incl. support to strengthen the capacity of the client in relation to procurement and E&S issues.

Environmental & Social Summary

Categorised B (ESP 2019). The construction of the new 400kV high voltage substation in the North-Eastern part of Jordan will help reduce transmission losses, reduce curtailment of renewable energy generation, and facilitate the connection of additional renewable energy capacity in the future. NEPCO is an existing client of the Bank and is the recipient of an ongoing E&S support TC since 2019 to strengthen their internal resources and corporate systems to be in line with EBRD's E&S Performance Requirements. Environmental and Social Due Diligence (ESDD) has been concluded on the substation component of the Project by independent consultants. The ESDD involved a documentation review, meetings with NEPCO's relevant departments and site visits to the Rehab substation. The associated power lines are part of the second tranche, which constitutes an A category Project. Subsequently an ESIA has been prepared to international standards, and the substation component is also referenced in this ESIA.

The Project is located on a privately-owned, vacant land with no existing structure and limited land use activities. The area around the site is also vacant with only sporadic agriculture or grazing activities.

ESDD confirmed that the construction of the substation will not result in any physical or economic resettlement. However, the area needed for the Project is owned by 172 persons; and considering this is a public benefit project, NEPCO proceeded with an urgent expropriation process that is in line with national law. The ESDD consultants have assessed that land acquisition and compensation process undertaken is not fully aligned with PR5 requirements in terms of the land valuation and PAPs consultation processes. EBRD has therefore commissioned an audit of the past land acquisition undertaken, with corrective measures identified to be included in a Corrective Action Plan (CAP) that will be agreed with the Company and covenanted. The development and acceptance of this CAP is a CP to first disbursement.

The site does not cross nor is it close to any biodiversity or cultural heritage sensitive areas. A specific SF6 monitoring management plan will be developed to identify and promptly manage SF6 leakage.

The corporate audit demonstrates NEPCO's overall alignment with international standards, demonstrated by Quality, Environmental, and Occupational Health and Safety Management Systems certified to ISO 9001, 14001, and 18001. The dissemination of the supporting procedures of those needs to be strengthened, and an update of the systems is also due including Human Resources and Contractor management arrangements. The E&S TC consultants will work with NEPCO to build their capacity and to bring the existing procedures in line with best practice and the Banks PRs.

The Human Resources policy and procedures, already in place at the corporate level, including workers grievance mechanism, will be cascaded to employees, contractors, and subcontractors of the Project. The Company will be required to develop a Health & Safety policy covering both workers and communities, and an Occupational and Community Health and Safety Plan. Emergency responses procedures will also be prepared. A framework for regular HSSE audits of the Contractor and subcontractors against Management Plans and corporate standards will be developed by NEPCO, included in the management system, and implemented for the Project. Any temporary worker accommodation will need to comply with the IFC-EBRD worker accommodation guidelines (2009).

A Stakeholder Engagement Plan and a Non-Technical Summary have also been prepared and been published in both Arabic and English. These documents cover and cross-reference the associated overhead power lines Project to be financed by the Bank under Tranche 2. The ESAP was also finalized and agreed with the Company and includes requirements relating to land acquisition, the development of detailed E&S management plans and contractor monitoring procedures. A TC-funded consultant dedicated to ESAP implementation support will be provided to NEPCO to ensure that the project is implemented according to Bank's PRs. The ESAP and CAP of the Project, as well as NEPCO E&S performance, will be monitored by external consultants reporting to EBRD on a bi-annual basis.

Technical Cooperation and Grant Financing

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

1) Environmental and Social Due Diligence - an Environmental and Social Assessment of the Company and project will be carried out by an external consultant with the aim of providing recommendations for environmental, health and safety, and social management of the Company, confirming the categorisation of the project and agreeing on an ESAP.

2) Environmental and Social Impact Assessment - The assignment aims to identify and mitigate future adverse environmental and social impacts of the proposed project and ensure that suitable mitigants.

3) Supporting implementation of Inclusion TI objectives - The assistance aims to develop a new accredited training programme and introduce new occupational skills standards for the sector.

4) PIU and Construction Supervision Consultant - The assistance includes the appointment of a consultant who will work with NEPCO to ensure that during the construction stage work is carried out in accordance with the quality required by the contract, within the stipulated time and at the correct price.

5) ESAP implementation support consultant - The assignment aims to offer NEPCO specialized E&S support to build capacity within the relevant teams and ensure compliance with the E&S requirements.

6) Independent E&S monitoring consultant - The assignment aims to monitor the implementation of the actions and regularly report to the Bank on the Project's compliance with the ESAP.

Company Contact Information

Muna Attiyat
info@nepco.com.jo
+962 6 5858615
+962 6 5818336
www.nepco.com.jo

Implementation summary

PSD last updated

05 Nov 2024

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 the 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 its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) 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 also requires its clients to disclose information, as appropriate, about the risks and impacts of 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 of the Bank's activities 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 EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either 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. OCCO will follow-up all matters reported. It will review all matters reported. 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, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. 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 (for example, 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 the 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 more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

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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NEPCO Northern Green Substation

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

Implementation summary

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)