JO - Amman East Power Plant

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The project's main objective is to meet the electricity needs of the country in an economically and environmentally sustainable manner to contribute to economic growth and well-being of the population of Jordan. The project would add about 370 MW of additional power to the system, help to ensure the reliability of power supply and help maintain a margin between available capacity and demand of at least 10 percent. The purpose of the IBRD Guarantee is to enhance competition and therefore help reduce the project's financing costs. The project components consist of a 370-MW gas-fired combined-cycle power station to be developed, owned, and operated by a private-sector project company. The power station will be constructed on a site located at Almanakher, east of Amman Jordan and about 1 km from the Arab Gas Pipeline. The fuel supply will be natural gas from Egypt; distillate fuel oil (DFO) will serve as backup fuel for emergency operations only. The first phase of the power station will comprise two simple-cycle gas turbines. The second phase will add a heat recovery steam generator (HSRG) and thus increase the capacity by 50 percent. The water for steam generation will be provided by the Water Authority of Jordan. The contractual structure of the transaction is consistent with industry standards with respect to the allocation of commercial, technical, and political risks among the parties in a limited-recourse project financing structure.