In Jordan, board approves 240 MW power project
The board of directors of the Overseas Private Investment Corp. approved $270 million in financing for construction of a nearly 240 MW electrical power plant in Jordan
Washington, D.C., September 17, 2012 — The board of directors of the Overseas Private Investment Corp., the U.S. government's development finance institution, approved $270 million in financing for construction of a nearly 240 MW electrical power plant in Jordan that will provide reliable energy for the country during peak usage periods.
AES Levant Holdings BV Jordan, an affiliate of the AES Corp., 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.
Electricity generated by the plant will be purchased by the National Electric Power Co. (NEPCO) of Jordan through a power-purchase agreement with AES Levant Holdings BV Jordan.
The peaker plant 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.
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.
OPIC is the U.S. government's development finance institution. It mobilizes private capital to help solve critical development challenges and in doing so, advances U.S. foreign policy. Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets catalyzing revenues, jobs and growth opportunities both at home and abroad. OPIC achieves its mission by providing investors with financing, guarantees, political risk insurance, and support for private equity investment funds.
Established as an agency of the U.S. government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers. OPIC services are available for new and expanding business enterprises in more than 150 countries worldwide. To date, OPIC has supported more than $200 billion of investment in over 4,000 projects, generated an estimated $75 billion in U.S. exports and supported more than 276,000 American jobs.