• Financing agreements for A/B Loans of Mafraq PV IPP signed with EBRD and FMO

  • Project Financial Close expected in March 2017  

  • Project will deliver Solar Energy at a record low tariff of 0.043 JD/kWh (equal to c. 6.13 USD cents/kWh), over a 20 year Power Purchase Agreement with NEPCO

  • Demonstrates ACWA Power’s commitment to Jordan and large scale renewable investment in the country

Dubai, United Arab Emirates,  22nd November 2016

ACWA Power is delighted to announce that the Financial Agreements of ACWA Power Mafraq, 60.3 MWp PV IPP, have been executed on the 12th November 2016. The financing comprises an A loan of US$ 27 million from the European Bank for Reconstruction and Development (EBRD) and a B loan of the same amount from the Netherlands Development Finance Company (FMO) to the Local Company for Water and Solar Energy Projects PSC (Project Company).

The project, developed by ACWA Power, will deliver the lowest tariff (0.043 JD/kWh equal to ca. 6.13 USD cents/kWh) in the Round II of the Photovoltaic Procurement program of the Ministry of Energy and Mineral Resources. ACWA Power Mafraq will be included in the assets of ACWA Power RenewCo, a new company created to group ACWA Power’s existing renewable energy portfolio, which already exceeds 1 GW.

The plant will be located in Mafraq Development Area (50km north-east of Amman) and is part of a 150MWac Solar Complex.  This project will also result in c. 1.5 million Tons of CO2 saved over 20 years, equivalent to 79,000 tons of CO2 per year.

The Power Purchase Agreement (“PPA”) and the Transmission Connection Agreement (“TCA”) for the project were signed by the Project Company with NEPCO in January 2016, followed by the Government Guarantee Agreement (“GGA”) with the Ministry of Finance in April 2016.

Thamer Al Sharhan, Managing Director of ACWA Power and Chairman of CEGCO, said: “This project is yet another demonstration of our commitment to the socio-economic development of Jordan. We capitalised on a unique opportunity to enhance our renewable footprint in Jordan and more importantly, by leveraging the platform that CEGCO offers. We are proud to be responsible for reliably delivering clean energy at the lowest ever tariffs for Jordan.”

Rajit Nanda, Chief Investment Officer of ACWA Power said: “This is an important project for ACWA Power in Jordan. It adds up to our presence as one of Jordan’s largest power generators (through CEGCO, and the ACWA Power Zarqa - which is nearing execution), and is yet another demonstration of our commitment to the country. The partnership with EBRD for funding this project has been a critical component in helping us support NEPCO by providing record low tariffs for Renewable energy in Jordan.” 

-Ends-

About ACWA Power:
ACWA Power is a developer, investor, co-owner and operator of a portfolio of power generation and desalinated water production plants currently with presence in 11 countries including in the Middle East and North Africa, Southern Africa and South East Asia regions. ACWA Power’s portfolio, with an investment value in excess of USD 33 billion, can generate 23+ GW of power and produce 2.5 million m3 /day of desalinated water to be delivered on a bulk basis to state utilities and industrial majors on long term off-take contracts under Public-Private-Partnership, Concession and Utility Services Outsourcing models.

ACWA Power, registered and head-quartered in the Kingdom of Saudi Arabia, is owned by eight Saudi conglomerates, Sanabil Direct Investment Company (owned by the Public Investment Fund of Saudi Arabia), the Saudi Public Pensions Agency and the International Finance Corporation (a member of the World Bank Group).

ACWA Power pursues a mission to reliably deliver electricity and desalinated water at the lowest possible cost while seeking to maximize local content and local employment creation, thereby contributing to the social and economic development of the communities and countries it invests in and serves.

ACWA Power strives to achieve success by adhering to the values of Safety, People and Performance in operating its business.

For more information, visit www.acwapower.com, or contact:
Jon Barber
Director – Communications & External Affairs
T + 971 (0)4 509 1052
M + 971 56 507 5710
F + 971 (0)4 385 9625 
www.acwapower.com

22nd Floor, Nassima Tower 
Sheikh Zayed Road 
P.O. Box 30582, Dubai 
United Arab Emirates

© Press Release 2016