IDECO Modernisation & Expansion Project

Location:

Jordan

Project number:

45673

Business sector:

Power and energy

Notice type:

Public

Environmental category:

B

Target board date:

11 Nov 2014

Status:

Cancelled

PSD disclosed:

20 Dec 2013

Translated version of this PSD: Arabic

Project Description

The EBRD is considering a senior loan of up to US$ 30 million to support Irbid District Electricity Company’s (IDECO).The investment will help IDECO implementing its programme to modernise and expand its network in Jordan ( the “Project”). The company is one of three electricity distribution companies operating in Jordan, and is responsible for the northern governorates.

Transition Impact

The Project will enable the Company to modernise and expand its electricity distribution network in northern Jordan. Investments will improve the capacity and reliability of IDECO’s network, allow the Company to meet rapid demand growth and demonstrate new grid management and control equipment to prepare the network for the subsequent rollout of smart grid technology. The Company’s operational efficiency will be boosted through reductions in losses and other distribution performance standards.

The Client

The client is Irbid District Electricity Company, a company incorporated in Jordan and listed on Amman Stock Exchange. It is one of three distribution companies in Jordan, with a 25-year distribution license covering the northern governorates of Irbid, Jerash, Mafraq, and Ajloun.

EBRD Finance

A senior unsecured corporate loan of up to US$ 30 million.

Project Cost

Up to US$50 million, or equivalent in local currency.

Environmental Impact

Categorised B: Environmental and social issues associated with the upgrade of existing distribution networks are expected to be site specific, readily identified and addressed through appropriate mitigation and management measures. The operator is already certified ISO9001/14001 and OHSAS18001. The Bank will undertake Environmental and Social Due Diligence (ESDD) and structure it to meet the Bank's Performance Requirements as well as Jordanian law.

The key issues to be addressed by the ESDD are

(i) the presence of PCB containing oil in some transformers,

(ii) vehicle fleet management and road safety,

(iii) rapidly growing demand partly driven by the influx of refugees from Syria and

(iv) customer relations and stakeholder engagement. Based on the ESDD, a corporate Environmental and Social Action Plan and Stakeholder Engagement Plan will be developed for the project.

Technical Cooperation

None.

 

Business opportunities

For business opportunities or procurement, contact the client company.

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