Overseas Private Investment sanctions loan for power plant in Jordan

19 September 2012 (Last Updated September 19th, 2012 18:30)

Overseas Private Investment Corporation (OPIC), a development finance institution of the US government, has sanctioned financing worth $270m for the construction of a 240MW electrical power plant in Jordan.

Overseas Private Investment Corporation (OPIC), a development finance institution of the US government, has sanctioned financing worth $270m for the construction of a 240MW electrical power plant in Jordan.

AES Levant, an affiliate of the US-based power company AES, will utilise the OPIC investment to build and operate the tri-fuel electrical plant.

The new power plant would be constructed on an unused portion of the Amman East Power project site, for which the agency provided a $70m loan in January 2007.

Jordan's National Electric Power Company will buy the electricity generated at the plant through a power-purchase agreement with AES Levant, which is owned under a shareholding structure between Mitsui and AES.

The project is expected to help Jordan meet its projected demand for electricity of 4,900MW by 2020 - 48% higher than the country's current generation capacity.

OPIC president and CEO, Elizabeth Littlefield, said ensuring availability of reliable electricity to Jordan's citizens all the time is a critical service.

"This project will help Jordan meet that need even as its electricity demand continues to grow," Littlefield added.

"We are pleased to support these services for the people of Jordan and to partner again with AES to make this project a reality."