EBRD, FMO to fund 51-MW solar project in Jordan

The European Bank for Reconstruction and Development (EBRD) announced USD 70 million (EUR 62.8m) in financing for the construction of an up to 51-MW solar park in Jordan.

The beneficiary would be Spanish solar developer Fotowatio Renewable Ventures (FRV), the EBRD said on Thursday. The plan is to extend a senior secured loan in two portions, A and B, of USD 35 million each. The lenders will be the EBRD and Netherlands Development Finance Company (FMO), respectively.

The funds will be received by a special purpose vehicle (SPV) called Al-Safawi for Green Energy PSC, which will develop, build and operate the solar power plant. It is 70%-owned by Abdul Latif Jameel Group (ALJ), through subsidiary FRV, while the remaining 30% are held by Arabia Trading & Consulting Company Ltd (ATC).

The total cost of the project is estimated at USD 93.3 million.

The Al Safawi 51-MW photovoltaic (PV) park will be situated in the Mafraq governorate in the northern desert region of Safawi. Its construction will support the Kingdom of Jordan's goal of 10% renewables by 2020, cut dependence on hydrocarbon imports and lower carbon dioxide (CO2) emission.

(USD 1.0 = EUR 0.897)

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