Amman East Power Project

active

In March 2007, the Jordan state utility National Electric Power Company (NEPCO) signed a BOO agreement with AES Jordan PSC, a joint venture between AES Oasis (60%) and Mitsui (40%), for the construction and operation of a 370MW gas-fired combined-cycle electric power station at Almanakher. The power to be generated by the plant was to be sold to the state-owned electric utility of Jordan at a price garanteed by a 25-year power purchase agreement (PPA). AES Oasis was a subsidiary of AES Corporation, of which 39% was sold to IDB Infrastructure fund (managed by Emerging Markets Partnership from Bahrain E.C.) in 2003 (US$150 million). This 39% was onsold to Qatar Electricity & Water Company (QEWC) in 2012. The award followed a competetive bidding process. In June 2005, 9 companies were qualified to bid for the BOO project: Tractebel, AES Corporation, International Power/Saudi Oger, Malakoff, Mitsui, Siemens, UnitInternational and Xenel/Gama. In October 2005, 4 out of the 9 companies were shortlisted for the final bidding: AES Corporation, Gama/Xenel, Mitsui and Saudi Oger. In March 2006, AES Corporation/Mitsui won the tender by proposing 7% less on tariff than the second team Xenel/Gama. Total project cost was evaluated at US$300 million. Financing was secured in March 2007 and was organized as follow: - US$110 million loan from Japan Bank for International Cooperation - US$70 million loan from Overseas Private Investment Corporation - US$45 million loan from Sumitomo Mitsui Banking Corporation (covered by IBRD Guarantee) - US$45 million equity from AES Corporation (90% covered by MIGA Guarantee) - US$30 million equity from Mitsui & Co. Ltd (90% covered by MIGA Guarantee) The project was expected to be completed by 2009. http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/02/23/000020953_20070223102629/Rendered/PDF/370980JO0R20071002811.pdf