Translated version of this PSD: Arabic
The EBRD is considering providing a sovereign guaranteed loan to the National Electric Power Company (NEPCO) to assist NEPCO in its reforms and developing Jordan's electricity sector. The Project will support NEPCO to adapt its operations to allow for further development of renewable energy in Jordan and to improve the sector's sustainability.
The proceeds of the Bank's loan will be used for NEPCO to (i) finance capital expenditures to improve renewable energy integration, including smart grid systems and new substations; and (ii) refinance existing debt to lengthen the tenors and provide terms more consistent with its operations.
The Project will contribute to the Competitive and Well-Governed transition qualities through a combination of capex investment and technical cooperation. Specifically, the Project will:
1) Promote renewable energy by enhancing the capabilities of the grid to absorb and manage power produced by renewable energy sources; and
2) Strengthen and reform NEPCO to improve the electricity sector's sustainability.
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 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
Up to USD 265 million sovereign guaranteed loan to NEPCO.
Total Project Cost
Up to USD 200 million of the proceeds will be applied to refinance short term debt.
Environmental and Social Summary
Categorised B (ESP 2014). The environmental and social (E&S) risks associated with high voltage electricity transmission and distribution activities can be significant, however as the loan is going to be used mainly for debt refinancing as well as the construction of substations, the associated E&S impacts should be site specific, readily identifiable, and can be mitigated through the implementation of a targeted Environmental and Social Action Plan (ESAP).
Environmental and Social Due Diligence (ESDD) is currently underway by independent consultants, and entails a documentation review, site visit and follow-up meetings with the Client. The focus of the Environmental and Social Due Diligence will be on NEPCO's corporate procedures in terms of Environmental, Health and Safety, and Social management.
The main E&S risks associated with NEPCO's activities include Occupational Health and Safety, as construction of substations will require a significant volume of works at height and excavation works; aspects related to land acquisition and compensation, stakeholder engagement, contractor management, and impacts on biodiversity.
Additional TC may be required to help with institutional strengthening of Environmental, Health and Safety and Social management at NEPCO. A review of technical assistance provided by other IFI's will be undertaken to look at any possible synergies.
Based on the ESDD, a Non-Technical Summary, Stakeholder Engagement Plan and an ESAP will be developed and agreed with the Company prior to Final Review. This PSD will be updated once ESDD is completed.
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) Financial Forecasting and Risk Management - the assistance aims at supporting NEPCO in improving its forecasting and analytical accounting tools and developing risk management strategies for each business line.
3) Corporate Governance and Compliance - the assistance targets improvements in the corporate governance structure and decision making capabilities of the Company.
4) E-Procurement - the assistance aims to support the implementation of an electronic procurement platform and system aiming to extend NEPCO's procurement opportunities to a wider universe of companies, including small and medium enterprises (SMEs), and allow for competitive pricing and improved cost management.
5) Renewable energy absorption - support will be provided to analyse Jordan's renewable energy absorption capacity and options to increase it.
Company Contact Information
Nisreen Abu Aboud
National Electric Power Company 275 Zahran Street P. O. Box 2310 Amman 11181 # Jordan
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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