World Bank members, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA) are backing the design, construction, ownership, and operation of a 485 MW gas-fired power plant in Jordan, according to a press release.
The project aims to increase the country’s power generation capacity while mitigating its impact on the environment. Once operational, the plant will generate power about a third of the current average cost in Jordan.
IFC is investing up to USD 75 mn in the combined cycle plant located in the Zarqa Industrial Zone, and mobilizing USD 200 mn of debt, alongside a consortium of lenders. MIGA is providing a guarantee for 20 years, covering up to USD 215.6 mn in commercial debt.
“This will be a climate-friendly addition to Jordan’s power supply, with the use of combined-cycle gas turbine technology helping significantly reduce greenhouse gas (GHG) emissions, particularly compared to the plant it replaces,” says Rajit Nanda, ACWA Power’s Chief Investment Officer.
ACWA Power, a leading developer of power plants in the Middle East and North Africa, will develop the project at a cost of approximately USD 485 mn. It will replace one of the country’s oldest and least efficient fuel oil-fired power plants, which is currently being decommissioned, with one of Jordan’s most energy-efficient, eco-friendly gas-fired power plants.