OPIC Board Approves $270 Million for Electricity Project in Jordan
September 17, 2012
(OPIC)
240MW plant to provide reliable energy during peak usage periods
WASHINGTON, D.C. – The Board of Directors of the Overseas Private Investment
Corporation (OPIC), the U.S. Government’s development finance institution,
approved $270 million in financing for construction of an approximately
240-megawatt electrical power plant in Jordan that will provide reliable energy
for the country during peak usage periods.
AES Levant Holdings BV Jordan Psc, an affiliate of the AES Corporation, a
Virginia-based power company, will use the OPIC investment guaranty to construct
and operate the tri-fuel electrical plant on an unused portion of the Amman East
Power project site, a rural area 15 miles outside of Amman, for which OPIC
provided a $70 million loan in January 2007. AES Levant Holdings BV Jordan Psc
is owned under a shareholding structure between Mitsui and AES similar to the
Amman East Power projects. Electricity generated by the plant will be purchased
by the National Electric Power Company (NEPCO) of Jordan through a
power-purchase agreement with AES Levant Holdings BV Jordan Psc.
Called a ‘peaker plant,’ the facility will provide electricity during periods of
peak electricity usage, such as evening hours and summer months.
The project will also help Jordan meet growing demand for electricity: without
continued investment in the energy sector, Jordan will be unable to meet its
projected demand for electricity of 4,900 MW by 2020 – 48 percent higher than
its current generation capacity. Enhancing electricity generation capacity has
been a priority for the Jordanian government after the Arab Spring decreased the
country’s ability to import gas from Egypt.
“Ensuring that Jordan’s citizens have reliable electricity at all times, even
during peak usage periods, is a critical service. This project will help Jordan
meet that need even as its electricity demand continues to grow,” said OPIC
President and CEO Elizabeth Littlefield. “We are pleased to support these
services for the people of Jordan and to partner again with AES to make this
project a reality.”
The 2007 Amman East Power project was the first independent power provider
project to be implemented under the Private Sector Power Generation Policy of
Jordan, designed to establish an environment for the sustainable development of
the country’s power industry and improve the quality and efficiency of its
electric services in the country.
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