Translated version of this PSD: Arabic
A senior secured limited recourse loan of up to USD 27.6 million to finance the development and construction of an up to 50 MWac solar photovoltaic plant located in the Risha region, 300 km north east of Amman, Jordan. The project will sustain the momentum of the Jordanian renewable energy sector, demonstrating how private sector capital and expertise can be mobilized to yield competitively low tariffs.
The project directly compliments Jordan's strategy of procuring cost-effective, indigenous energy supplies to mitigate its energy crisis and lessen energy security concerns. As part of the government's ambitious program to generate 10% of Jordan's electricity demand from renewables by 2020, the project will play a key role in contributing to this target and to reducing the import dependence and lowering the carbon intensity of the Jordanian power sector. In addition, by providing power at a tariff of USD 5.9 cents (which is below the tariff offered by any other projects in the context of Rounds I and II), the project helps replace costly energy imports which historically have been linked to oil and gas prices thereby bringing benefit to the Jordanian economy as well.
By adding 50 MW of energy generation from renewables in Jordan, the project will assist transition to a low-carbon economy in Jordan which is almost entirely reliant on thermal power generation.
The project is expected to avoid more than 90,000 tons of CO2 emissions annually. The project also grows the share of privately-owned power generation in Jordan, which is currently only around 50%, and assists in a transition to a greener economy.
INTERNATIONAL COMPANY FOR WATER AND POWER PROJECTS (ACWA POWER)
The Borrower will be a special purpose vehicle incorporated in Jordan for the sole purpose of developing, constructing and operating the project. The Borrower will ultimately be 100% owned by by International Company for Water and Power Projects ("ACWA Power"). ACWA Power was founded in 2004 in the Kingdom of Saudi Arabia ("KSA") as joint venture formed by ACWA Holding and the MADA Group for Industrial and Commercial Development amid efforts by the Saudi government to increase private sector involvement in the economy. ACWA Power is a developer, investor, co-owner and operator of power and desalinated water production plants. It is majority owned by eight Saudi conglomerates, and by the end of 2016 had a generation portfolio of 22 GW of power and 2.5 million m3/day of desalinated water with an investment value in excess of USD 30.5 billion.
EBRD Finance Summary
USD 27.6 million
Up to USD 27.6 million senior secured limited recourse loan will be provided by EBRD. The rest of the financing requirements will come from the German Development Bank (DEG) and Arab Bank.
Total Project Cost
USD 69 million
Environmental and Social Summary
Categorised B (2014). The environmental and social impacts associated with the development of the 50 MW photovoltaic power plant located in Risha region, North Eastern Jordan, are readily identified. The project is situated in the military zone 4km from Iraq border, adjacent to the existing 150 MW Risha gas turbine power plant, which is owned and operated by CEGCO (controlled by ACWA). The nearest settlement is Al Raiwashed at 70km distance from the site. The project occupies a 200ha government-owned land plot characterized as being barren desert habitats of eastern deserts of Jordan. The archaeological authorities confirmed that the plant does not impact any designated cultural heritage monuments areas. The nearest protected site (Important Bird Area) is in ca. 80km. The project has been subject to a Jordanian Environmental and Social Impact Assessment (ESIA) and public consultations in spring 2017, and an environmental permit was issued by the Competent Authorities. The project's Environmental and Social Due Diligence (ESDD) was carried out by an independent consultant under the terms of reference prepared by the Bank. The ESDD focused on reviewing Client's E&S institutional capacity and management systems to ensure project's compliance with EBRD Performance Requirements (PR), and analysis of specific environmental issues such as dust emissions, flooding risk around wadi, water use and wastewater management, raw materials sustainability and supply chain issues, waste handling of broken or old panels, and review of specific social issues, including land acquisition, impacts on grazing, local employment opportunities, construction workers influx management, security and safety linked to location in the military zone, as well as occupational and community safety among others.
The Non-Technical Summary (NTS) and Stakeholder Engagement Plan (SEP) were prepared for the project to summarize key issues and inform stakeholders on project's impacts and measures to address them. The NTS and SEP in English and Arabic will be posted on Company's website, as well as being made available as hard copies locally to facilitate information disclosure in the neighboring community. CSR plan/Program will be developed jointly with EPC Contractor to address local labor vocational training needs, employment expectations management and grievances prevention.
To ensure compliance with the Bank's PRs and to address the gaps identified at the ESDD the ESAP has been developed by the consultants and is currently being agreed with the Client. ESAP shall be agreed prior to the Board submission.
The Bank will monitor the implementation of the project via annual E&S reports review and monitoring site visits when required.
Read the Non-Technical Summary (NTS) in Arabic.
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