Sep 19 (Renewables Now) - The European Bank for Reconstruction and Development (EBRD) is looking at providing up to USD 52 million (EUR 43.4m) in loans for the construction of a 45-MW wind farm in Jordan.
The lender said on Monday it plans to extend a senior secured A/B loan to Shobak Wind Energy PSC, a special purpose vehicle set up for building and operating the proposed power plant. It is seen to require an investment of USD 104 million, up to USD 78 million of which will come from debt.
The EBRD financing will consist of two USD-26-million A and B loans, while the balance of the needed funds of up to USD 26 million will be provided by the Islamic Corporation for the Development of the Private Sector (ICD).
EBRD has initiated an independent environmental and social due diligence on the project and will make a decision on the financing on November 15.
Following completion, the wind park will operate under a long-term power purchase agreement with the Jordanian National Electricity Power Company.
Shobak Wind Energy is controlled by Dubai-based independent developer Alcazar Energy Partners, among the co-owners of which are the International Finance Corp (IFC) and Mubadala Infrastructure Partners. US-based power developer Hecate Energy has a minority shareholding in the project.
The scheme is expected to contribute to achieving Jordan’s target of meeting 10% of its power demand with renewables by 2020 and lower its dependence on hydrocarbon imports.
(USD 1.0 = EUR 0.835)