Al Manakher Tri-Fuel Power Plant (IPP3)

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The project sponsors KEPCO (60%, South Korea), Mitsubishi Corporation (35%, Japan), and Wartsila Corporation (5%, Finland) were developing the 573MW tri-fuel (natural gas/HFO/LFO) power plant IPP3. The project was expected to consist of a 300-350MW base load and 200-250MW peaking plant capacity. The project is expected to operate on HFO until 2015, it is expected the plant will switch to natural gas once supply infrastructure becomes available. The project company, Amman Asia Electric Power, held a 25 year dollar power purchase agreement with state-owned electricity utility NEPCO, which included a fixed US dollar denominated capacity charge and fuel pass through. The EPC contract was awarded to Wartsila and Lotte Engineering & Construction. The project was awarded following a competitive tender which closed October 2011. Bid criteria was lowest tariff, as well as other technical criteria. Other contenders included a consortium of Saudi Oger, Samung C&T and Korea East-West. KEPCO's bid involved Wartsila's dual fired technology. Eighteen companies responded to the initial Request for Pre-qualification in November 2010. During the process, shortlisted consortium AES, Malakoff, CCC and Sithe, dropped out early. Total EPC contract was valued at $552 million, of which Wartsila's share wasw $334 million. Wartsila was also responsible for a 15 year parts-supply-agreement and a 5 year Technical Service Agreement. Commissioning of phase 1 (250MW) was expected for January 2014. Financial closure was achieved in 30 January 2013. Total project cost was estimated at US$812 million. Financial advisors of the sponsor were Mizuho. Financing was provided by Mizuho, BTMU, KfW-IPEX and SMBC. The project loans were covered by KEXIM and NEXI. Financing consisted of three tranches: 1) $290 million, 2) $125 million, and 3) $181 million. The first and second tranches was covered by KEXIM and funded by BTMU, KfW-IPEX, Standard Chartered, Mizuho and SMBC. The third tranche was funded by BTMU, KfW-IPEX, Mizuho and SMBC. The tenor was 19.8 years. NEXI also provided an extended political risk coverage on the Jordan government guarantee. KEXIM reports it provided a $320 million loan and $107 million guarantee. Based on this information, debt/equity ratio is 72/28. http://www.gtreview.com/trade-finance/global-trade-review-news/2013/January/Jordan-power-plant-gets-loan_10632.shtml http://www.wartsilareports.com/en-US/2012/ar/stories/story/jordans-ipp3-will-be-in-the/ http://www.mitsubishicorp.com/jp/en/pr/archive/2012/html/0000015839.html