The International Finance Corporation (IFC), a World Bank Group member, has arranged $188m funding for the solar photovoltaic (PV) power plant in Jordan.
The solar PV plant, touted to be the largest in the country, is the latest in a series of efforts to boost renewable energy investments in a country that is facing increased energy demand, in part driven by the growing refugee crisis.
The financing package for the 248MW Baynouna facility, developed by Masdar, also known as Abu Dhabi Future Energy Company, includes $54m from IFC’s own account and $134m mobilised from other senior lenders, including a parallel loan from Japan International Cooperation Agency (JICA).
This is the first time JICA is investing in a private project finance transaction in the region.
Other lenders include 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 new plant will supply electricity well below the average cost of power in Jordan, further lowering the cost of long-term electricity generation in the country.
Masdar CEO Mohamed Jameel Al Ramahi said: “The diversity of financial institutions supporting Baynouna illustrates both IFC’s successful track record with the private sector in emerging markets over the last 60 years and the strength of its commitment to best practice.
“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.”
IFC director for the Middle East and North Africa Mouayed Makhlouf said: “Renewable energy is a pillar of IFC’s work, in the region and beyond. We have already financed several major projects, encouraging private investment in the sector and pioneering innovative financing models.
“We stand ready to support Jordan in meeting its growing energy needs and becoming a model for renewable energy investments.”