International Finance Corporation (IFC) has arranged a financing package of up to $188 million to fund the largest solar photovoltaic power plant in Jordan.
The investment from IFC – a member of the World Bank Group, – is the latest in a series of efforts to boost renewable energy investments in a country faced with increased energy demand.
The financing package for the 248-megawatt Baynouna facility developed by Masdar and Abu Dhabi Future Energy Company, includes $54 million from IFC’s own account and $134 million mobilised from other senior lenders including a parallel loan from Japan International Cooperation Agency (JICA). This will be the first time JICA has invested in a private project finance transaction in the region.
Other lenders to the project include Dutch Development bank FMO and Europe Arab Bank as B lenders and OFID, the OPEC Fund for International Development and German development bank DEG as parallel lenders.
So far, IFC has invested over $300 million across 13 projects, enabling well over $1 billion in private sector investments in Jordan’s power distribution and generation sectors.
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar 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.”
Mouayed Makhlouf, IFC Director for the Middle East and North Africa 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.”