EBRD supports renewable energy in Jordan
Nov 29 (The FINANCIAL) -
Continuing to support Jordan’s wind power generation, the European Bank for Reconstruction and Development (EBRD) is providing a US$ 52 million loan for the construction and operation of a 45 MW wind farm in the Shobak region, 160 km south of the capital, Amman.
The loan will be provided to Shobak Wind Energy PSC, a company majority owned by Alcazar Energy Partners, a UAE-based independent developer active in the Middle East, Africa and Turkey. Alcazar Energy is developing the project in partnership with Hecate Energy LLC, a US-based developer, according to the EBRD.
The EBRD’s loan is split between an A loan provided on the Bank’s own account for US$ 26 million and a B loan funded by the Europe Arab Bank (EAB) for the same amount. The Islamic Corporation for the Development of the Private Sector (ICD) has also provided a parallel tranche of Islamic finance totalling US$ 26 million alongside the EBRD’s loan.
The Shobak wind farm is the second wind farm to be financed by the EBRD under Jordan’s first round of its programme of private utility-scale wind projects. It is the ninth renewable project financed by the EBRD in Jordan and brings the cumulative installed capacity of renewable projects supported by the Bank to 350 MW.
Funding this farm, the EBRD aims to develop Jordan’s wind resources to deliver much-needed generating capacity, reducing the country’s import dependence and lowering the carbon intensity of the power sector.
Harry Boyd-Carpenter, EBRD Director for Power and Energy, said: “We are delighted to support Alcazar Energy Partners again and to collaborate with our co-financiers, the Islamic Corporation for the Development for the Private Sector and Europe Arab Bank to bring cleaner, more reliable generating capacity to Jordan. This is another example of how well-designed regulatory frameworks are allowing countries across the region to shift rapidly from reliance on hydrocarbons to energy sources that are sustainable, affordable and secure.”
Daniel Calderon, co-founder and CEO of Alcazar Energy, said: “The Shobak project is another significant milestone for our company in building a sustainable portfolio of assets. By early next year when construction starts on Shobak, our portfolio will comprise seven projects in construction or operation in the region. We appreciate the continued support of the government of Jordan, our lenders and investors. Shobak is further strengthening our relationship with the EBRD and the Arab Bank group who have both been supporting our company from its early years.”
Jordan became an EBRD country of operations in 2012. To date, the EBRD has committed over US$ 1 billion to 40 projects in Jordan, of which 11 are in the power and energy sector.
Alcazar Energy, which was formed in 2014, is an independent developer and power producer focused on renewable energy generation across the Middle East, Africa and Turkey. Alcazar focuses on solar photovoltaic and onshore wind technologies and targets emerging economies with attractive underlying market fundamentals and developed regulatory frameworks. Alcazar is owned by, among others, International Finance Corporation (IFC), AMC, Mubadala Infrastructure Partners, Blu Stone Management and DASH Ventures.
Hecate Energy LLC is one of the leading developer, owner and operators of power plants in North America and internationally. Hecate Energy brings together business acumen, technical understanding and significant experience in the industry to develop world-class power projects. The company specialises in solar and wind power, natural gas plants and energy storage, unearthing creative approaches to structuring power purchase agreements and financing power projects both in the United States of America and abroad. Hecate Energy believes in collaborative, long-term partnerships with the communities, organizations and countries it serves.