The FINANCIAL — Continuing to support Jordan’s solar programme, the European Bank for Reconstruction and Development (EBRD) is extending a US$ 65 million loan to fund a 51 MW solar plant located in the Al-Safawi area of northern Jordan.
The loan will be provided to Al-Safawi for Green Energy PSC, a Jordanian company 70 per cent owned by Fotowatio Renewable Ventures (FRV) and 30 per cent owned by Arabia Trading & Consulting Company Ltd (ATC). The loan is split equally between an A loan provided on the EBRD’s own account and a B loan funded by the Dutch development Bank (FMO).
This solar plant is the fourth and final project to be developed under the second round of Jordan’s solar programme. The successful financing of that round firmly establishes Jordan as a regional leader in the successful deployment of renewable energy. Furthermore, the project is expected to stimulate economic development and local employment in northern Jordan, a region that faces significant challenges from the refugee influx, according to EBRD.
Harry Boyd-Carpenter, EBRD Director for Power and Energy, said: “This project is the third financed by the EBRD under Jordan’s second round of its solar energy programme, bringing the total installed capacity of power projects supported by the EBRD in Jordan to more than 1,000 MW. We are pleased to continue our successful cooperation with FMO and FRV, and delighted to support FRV and ATC in this fruitful collaboration.”
“The Al-Safawi project further cements ATC’s commitment towards supporting Jordan’s renewable energy ambitions,” said Mohanned Khalifeh, ATC Group CEO. “The project, which was originated by ATC, is our second solar development in Jordan. As the only local developer to be successfully involved in this second round of solar programme, we endeavour to amplify our commitment through the capacity building of local Jordanian talent across all project phases.”
Rafael Benjumea, CEO of FRV, emphasised the social impact of the project: “We want to share our success with the communities where we operate, and scholarships are one of our strongest commitments. With the “Young Talented Leaders scholarship”, we get to extend the social impact of our projects, encouraging the educational development in the region. This is the second time the EBRD has supported this initiative. The EBRD’s support has enabled us to keep meeting our social commitment in the country.”
Jordan became an EBRD country of operations in 2012. To date, the EBRD has committed US$ 1 billion to 38 projects in Jordan, of which 10 are in the power and energy sector. This is the eighth utility-scale renewable project financed by the EBRD in Jordan and brings the cumulative installed capacity of projects financed by the EBRD in Jordan to more than 1,000 MW, of which 300 MW are renewables.
FRV is one of the leading global developer and operators of renewable energy generation assets with a 4.8 GW (DC) development portfolio in Australia, the Middle East, Africa, Asia and Latin America. Since 2006, FRV has completed the financing and construction of over 780 MW (DC) of photovoltaic and concentrated solar power solar energy plants. Such projects represent more than US$ 2.5 billion in total project debt financing raised among more than 20 leading international banks.
ATC was established in 1988 and is a diversified Jordanian business comprised of independent entities active in consulting, contracting, renewable energy development, operations and management, media and advertising, radio and TV broadcasting, IT and food and beverage. It operates in electricity, water and energy generation with strong local presence in solar energy performance contracts and operations. ATC remains the only developer to successfully participate in each of Jordan’s solar independent power producer rounds, beginning with the currently operational Arabia One 11.5 MW Solar PV Plant as part of round 1. In total, ATC has over 75 MW PV of operational- or under-development solar assets.
FMO is a Dutch development bank. As a leading impact investor FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development. It focuses on three sectors that have high development impact: financial institutions; energy; and agribusiness, food and water. With a committed portfolio of €9.0 billion spanning over 92 countries, FMO is one of the larger bilateral private sector developments banks globally.
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