The International Finance Corporation (IFC), a member of the World Bank Group, has finalised a $221m debt package to support the development of a 117MW wind farm in Jordan.
Acting as the lead arranger, IFC has provided $69m in loans and helped mobilise another $79m from other lenders for the project.
Eksport Kredit Fonden, the European Investment Bank, FMO, the OPEC Fund for International Development, and Europe Arab Bank have also participated in financing the Tafila wind power project, which is estimated to cost approximately $302m.
The investment is part of IFC’s efforts to promote the use of renewable energy in the Middle East and North Africa.
Jordan Wind Project Company, owned by InfraMed Infrastructure Fund, Masdar and EP Global Energy, is developing the project, which is likely to produce electricity at a price up to 25% less than that of thermal power and curb 224,000t of CO2 emissions annually.
The proposed project calls for the construction, operation and maintenance of the wind farm and associated facilities in the Tafila region of Jordan some 180km south of Amman and 180km north of the Port of Aqaba.
The company will lease the land for the project from both the public and private owners, and no economic or physical relocation of people will be needed.
The project, which is claimed to be Jordan’s first renewable energy independent power producer, will sell its output to National Electric Power Company (NEPCO) under a 20-year power purchase agreement.
IFC Middle East and North Africa director Mouayed Makhlouf said as fossil fuels become increasingly expensive, and with the spectre of climate change looming, it is important for countries like Jordan to harness renewable energy.
"At the same time, it is vital for lenders to support the sector, and this project will help demonstrate its potential," said Makhlouf.