Translated version of this PSD: Arabic
The EBRD is considering providing a senior loan of up to US$ 100 million to fund the development of a 240MW peaking power plant, 15 km east of Amman in Jordan (the “Project”). The Project is urgently required to ensure the quality and security of electricity supply in Jordan and to prepare the grid for future deployment of large quantities of intermittent renewable energy. The Project is being developed as the result of a competitive tender by the government of Jordan and will be implemented on a build, own, operate basis. All output will be sold to the National Electric Power Company.
The Project’s transition impact stems from three factors:
(i) creation of an enabling environment for Jordan's transition towards a sustainable, low carbon economy through the provision of flexible, responsive backup capacity necessary to prepare the grid for installation of intermittent renewables;
(ii) contribution to the development and growth of the Jordanian economy through the provision of a stable, high quality supply of electricity; and
(iii) more widespread private ownership by supporting a privately sponsored and competitively tendered project.
The client is AES Levant Holding BV Jordan PSC (the “Company”), a special purpose vehicle incorporated in Jordan for the purpose of building, owning and operating the Project. The client is ultimately owned 60% by AES Corporation (AES) and 40% by Mitsui and Co. Ltd. AES is a global power company headquartered in the US with operations in 27 countries and Mitsui is a Japanese public company and one of the world’s largest conglomerates.
A secured limited recourse loan of up to US$ 100 million.
The remainder of the required funding is expected to come from a mixture of debt financing from the US Overseas Private Investment Corporation and Sponsors’ equity/shareholder loans.
US$ 360 million.
The Project has been categorised A. Consistent with the Bank’s 2008 Environmental and Social Policy, an Environmental and Social Impact Assessment (ESIA) and associated documentation (Stakeholder Engagement Plan (SEP), Non-Technical Summary (NTS), and Environmental and Social Mitigation and Monitoring Programme (ESMMP)) have been prepared and disclosed to the public for review and comments. The ESIA, an Executive Summary, and a previous version of the ESMMP have previously been disclosed by the Overseas Private Investment Corporation (OPIC).
Due diligence undertaken and outcomes
The Bank’s Environmental and Social Due Diligence (ESDD) is being conducted in collaboration with OPIC, which is also considering providing financing for the Project. An independent consultant has also been appointed to support the ESDD process. Due diligence has included visits to the site by environmental and social specialists and reviews of the ESIA documentation, including the draft Environmental and Social Mitigation and Monitoring Programme.
The independent consultant has confirmed that the project is structured to comply with environmental and social requirements of Jordanian law and of the World Bank/International Finance Corporation. However, the Project will not fully meet the EU Industrial Emission Directive Emission Value Levels for NOx emissions by new plants constructed from 2012 onwards. Therefore, derogation from the EBRD 2008 Environmental and Social Policy is required for this element of the Project. The on-going ESDD is seeking to verify that the Project would not have adverse public health impacts notwithstanding that air emissions may be higher than allowed for new plants under EU requirements.
The SEP, NTS, and ESMMP are available in English and Arabic. In addition, paper copies of these documents and the ESIA in Arabic have been disclosed locally at locations specified in the SEP and on EBRD’s website. The ESIA package is available for public review and comment for at least 60 days prior to consideration by the EBRD Board. Before the end of the disclosure period, public meetings will be held in the nearby village of Al-Manakher to receive comments.
The Bank will closely monitor project implementation and will undertake additional site visits during the construction and future operation of the project.
There is an Environmental and Social Impact Assessment available for this project.
Mr. Feras Mohammad Hammad
Amman East Power Plant,
Al Madhonna St – Al Mankher Village,
P.O. Box 3099,
Amman 11181, Jordan
Telephone: +962 6 4293200
Mobile: +962 7 96401352
E-mail address: email@example.com
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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Text of the PIP