ACWA Power Jordan

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IFC is considering an equity investment of up to US$ 15 million to acquire a minority stake in ENARA, owner of 51% of the Central Electricity Generating Company (“CEGCO”), Jordan’s largest power generation company with an installed capacity of 1,500 MW. CEGCO’s power plants currently sell power to NEPCO, the government owned transmission company and single buyer under long-term power purchase agreements (“PPAs”). IFC would invest alongside Acwa Power International (“ACWA Power”), one of the MENA region’s premier power developers. In addition to running CEGCO’s plants in accordance with the existing PPAs, ACWA Power’s future plans also contemplate upgrading of existing sites and assets to add capacity at costs that are below the cost of greenfield capacity additions and/or extending the terms of the existing PPAs for certain plants based on technical and environmental feasibility. CEGCO’s existing thermal power plants include (i) Aqaba Thermal Power Station (Total 656MW, 130MW x 5 steam units plus 6MW hydro, Phase 1 started operation in 1985 & Phase 2 in 1996, Heavy Fuel Oil (HFO)-fired, but converted to run on imported gas from Egypt), (ii) Hussein Thermal Power Station (Total 363MW, 33MW x 3 HFO-fired steam units, 66MW x 4 HFO-fired steam untis, started operation in 1976/1977/1984), (iii) Rehab Power Plant (Total 357MW, 30MW x 2 gas-fired simple cycle gas turbine, plus 297MW gas-fired combined cycle gas turbine, started operation in 1994-2005), (iv) Risha Power Plant (Total 150MW, 30MW x 5 gas-fired simple cycle gas turbines, started operation in 1989-2005), (v) Marka Power Plant (Total 80MW, 20MW x 4 LFO-fired simple cycle gas turbines, started operation in 1978-1980), (vi) Amman South (Total 30MW x 1 LFO-fired simple cycle gas turbines, started operation in 1995), (vii) Karak (Total 20MW, LFO-fired simple cycle gas turbine, started operation in 1982). In addition, CEGO has two wind power plants (i) Ibrahimiya Wind Power Plant (Total 0.32MW, 0.08MW x 4 wind turbines), and (ii) Hofa Wind Power Plant (Total 1.125MW, 0.225MW x 5 wind turbines). ACWA Power is reviewing the upgrading and capacity addition to improve CEGCO’s overall energy efficiency, environmental performance and power supply security. Details are still to be developed. ACWA Power will implement further upgrading and capacity addition in accordance with the agreed Environmental and Social Action Plan and IFC Performance Standards.