OPIC Board Approves $270 Million for Electricity Project in Jordan
September 17, 2012
(OPIC)
240MW plant to provide reliable energy during
peak usage periods
WASHINGTON, D.C. – The Board of Directors of
the Overseas Private Investment Corporation
(OPIC), the U.S. Government’s development
finance institution, approved $270 million in
financing for construction of an approximately
240-megawatt electrical power plant in Jordan
that will provide reliable energy for the
country during peak usage periods.
AES Levant Holdings BV Jordan Psc, an affiliate
of the AES Corporation, a Virginia-based power
company, will use the OPIC investment guaranty
to construct and operate the tri-fuel
electrical plant on an unused portion of the
Amman East Power project site, a rural area 15
miles outside of Amman, for which OPIC provided
a $70 million loan in January 2007. AES Levant
Holdings BV Jordan Psc is owned under a
shareholding structure between Mitsui and AES
similar to the Amman East Power projects.
Electricity generated by the plant will be
purchased by the National Electric Power
Company (NEPCO) of Jordan through a
power-purchase agreement with AES Levant
Holdings BV Jordan Psc.
Called a ‘peaker plant,’ the facility will
provide electricity during periods of peak
electricity usage, such as evening hours and
summer months.
The project will also help Jordan meet growing
demand for electricity: without continued
investment in the energy sector, Jordan will be
unable to meet its projected demand for
electricity of 4,900 MW by 2020 – 48 percent
higher than its current generation capacity.
Enhancing electricity generation capacity has
been a priority for the Jordanian government
after the Arab Spring decreased the country’s
ability to import gas from Egypt.
“Ensuring that Jordan’s citizens have reliable
electricity at all times, even during peak
usage periods, is a critical service. This
project will help Jordan meet that need even as
its electricity demand continues to grow,” said
OPIC President and CEO Elizabeth Littlefield.
“We are pleased to support these services for
the people of Jordan and to partner again with
AES to make this project a reality.”
The 2007 Amman East Power project was the first
independent power provider project to be
implemented under the Private Sector Power
Generation Policy of Jordan, designed to
establish an environment for the sustainable
development of the country’s power industry and
improve the quality and efficiency of its
electric services in the country.
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