Al Rajef Wind Farm

Location:

Jordan

Project number:

48100

Business sector:

Power and energy

Notice type:

Private

Environmental category:

A

Target board date:

07 Sep 2016

Status:

Repaying

PSD disclosed:

17 May 2016

Translated version of this PSD: Arabic

Project Description

A senior secured loan of up to USD 68 million to Green Watts Renewable Energy LLC to finance the construction of an 82 MW wind farm (the Project) in Jordan near the village of Al Rajef in the Ma'an Governorate, approximately 200 km south of Amman. The project will sell all its power under a long-term power purchase agreement to the Jordanian National Electricity Power Company.

Project Objectives

The Project will support Jordan in increasing its electricity generation capacity from clean, renewable sources and reducing reliance on hydrocarbon imports.

Transition Impact

As one of the first wind energy projects to be developed under Jordan's feed-in-tariff scheme, Al  Rajef will (i) boost international private sector investment in Jordan's power generation sector; (ii) provide an example for potential future investors considering investing in Jordan's significant renewable energy potential; and (iii) help the country diversify its power sector away from its current near full dependence on thermal generation fuelled by imported oil and gas.

Client Information

GREEN WATTS RENEWABLE ENERG CO. LLC

Green Watts Renewable Energy LLC is a special purpose vehicle incorporated in Jordan for the sole purpose of developing, constructing and operating the Project. It is 100% owned by Alcazar Energy Partners, a Dubai-based independent developer and power producer active in the Middle East, Africa and Turkey.

Alcazar is owned, amongst others, by IFC, IFC Catalyst Fund, Mubadala Infrastructure Partners, Alcazar Projects and DASH Ventures.

EBRD Finance Summary

EBRD will provide up to USD 68.3 million, which is half the total debt required. The remaining debt will be provided on a parallel basis by Proparco and DEG.

Total Project Cost

USD 184,600,000.00

Environmental and Social Summary

The project is category A (ESP 2014). The construction and operation of an 82 MW greenfield wind farm in an area close to the Rift Valley flyway and cultural heritage sites requires a fit for purpose Environmental and Social Impact Assessment (ESIA) in accordance with the Bank's Environmental and Social Policy. No comments were received during the 60 day disclosure period.

The Project was subject to a comprehensive ESIA in 2015 with bird and bat migration studies over 4 migration seasons. The developer's ESIA was approved by the local Competent Authorities and the Project has obtained the appropriate permits from the local competent authorities. The ESIA showed that environmental and social impacts are site specific and can be mitigated. The Project will not impact birds or bats, is located away from residential areas, and will not impact heritage sites. A landscape assessment has been undertaken and consultations have occurred with the local community and heritage authorities.

The Bank has undertaken additional independent Environmental and Social Due Diligence (ESDD) of the Project. This has confirmed that the Project is structured to comply with the Bank's Performance Requirements and National and EU requirements and that the company has the institutional capacity to fully implement the Bank's Performance Requirements. As part of the due diligence discussions were held with, among others, BirdLife and heritage conservation bodies to receive feedback on the Project.

Based on the ESDD an ESIA disclosure package was developed in both Arabic and English languages. This includes an Environmental and Social Action Plan (ESAP) developed to ensure that the Project is constructed and operated in line with the Bank's PRs and the IFC's Performance Standards. Key impacts and risks considered include culture heritage, land acquisition and use, biodiversity and workers and community health, safety and security. The ESIA and the ESAP include a suite of management and monitoring plans that will be undertaken such as ongoing ornithological monitoring for 3 years, development of an active turbine management plan, chance finds procedures, labour and contractor management, stakeholder engagement activities, etc. The Bank will monitor the implementation of the Project. There is an environmental disclosure package available for this Project.

There is an Environmental and Social Impact Assessment available for this project.

Technical Cooperation

None.

Company Contact Information

Markus von Haniel
mvonhaniel@alcazarenergy.com

+971 (0) 4 352 8167
+971 (0) 4 352 8167

http://alcazarenergy.com/
Alcazar Energy Partners Suite 802-803, South tower Emirates Financial towers, DIFC P.O. Box
506672 Dubai, United Arab Emirates Green Watts Renewable Energy LLC PO Box 1999 Amman
11941 The Hashemite Kingdom of Jordan

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