IFC to finance 102 MW of solar PV projects in Jordan

Oct 16, 2014 - The International Finance Corp (IFC) has arranged a USD-207.5-million (EUR 162m) debt package for seven solar projects in Jordan with a total capacity of 102 MW.

The World Bank's lending arm will extend USD 91.5 million in loans from its own account for the plants’ construction. The remaining USD 116 million in financing are coming from Arab Bank in Bahrain, European Arab Bank, Dutch development bank FMO, FinnFund and the Fund for International Development of OPEC (Organization of the Petroleum Exporting Countries).

The solar projects are being developed by Jordanian and international investors. The list of participants includes Shamsuna Power Company (Aqaba), Jordan Solar One (Mafraq), Falcon Ma`an for Solar Energy and other independent private sector companies.

IFC is the mandated lead arranger for all seven schemes, five of which will be located close to Ma`an city in south-central Jordan. The other two will be built near Aqaba in the south and near Mafraq in the north. Once completed the photovoltaic (PV) parks are estimated to produce 212 GWh annually, reducing Jordan's reliance on imported fossil fuels.

The project represents the largest private sector-led solar initiative in the Middle East and North Africa (MENA) region, IFC noted. Previously, the international financial institution also arranged USD 221 million in financing for a 117-MW wind project in Jordan.

(USD 1 = EUR 0.781)

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