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Jordanian PV project secures USD 188m with IFC's help

Image by: Addy Cameron-Huff.

January 16 (Renewables Now) - The International Finance Corporation (IFC) has arranged up to USD 188 million (EUR 154m) in financing for the 200-MW Baynouna solar project in Jordan, the World Bank Group member said Tuesday.

The photovoltaic (PV) plant, whose capacity in direct current (DC) stands at 248 MW, will supply power “well below Jordan’s average cost of electricity”, the IFC pointed out. Thus it will help cut the cost of long-term power generation in the country.

A USD-54-million from the IFC is just part of the financing package. There is also a parallel loan by the Japan International Cooperation Agency (JICA), its first investment in a private project finance transaction in the region. The list of lenders also includes Dutch development bank FMO and Europe Arab Bank as B lenders, and the OPEC Fund for International Development (OFID) and German development bank DEG as parallel lenders.

The Baynouna solar project has been developed by Abu Dhabi Future Energy Company, better known as Masdar. It recently sold a 30% stake in it to Finnish asset manager Taaleri Oyj (HEL:TAALA).

“With backing now secured from lenders in Asia, Europe and the Middle East, the significant global interest in commercial renewable energy in Jordan and the MENA region is clear,” said Mohamed Jameel Al Ramahi, CEO of Masdar.

In part due to the growing refugee crisis, Jordan has to deal with rising energy demand. The IFC said it has so far invested more than USD 300 million across 13 projects in the Hashemite Kingdom, enabling over USD 1 billion in private sector investments in power distribution and generation.

(USD 1 = EUR 0.82)

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Browse all articles from Tsvetomira Tsanova

Tsvet has been following the development of the global renewable energy industry for almost nine years. She's got a soft spot for emerging markets.

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