Masdar & IFC: Funding Jordan’s largest solar project

Finance mandate letter signed today at Abu Dhabi Sustainability Week 2017

Abu Dhabi, United Arab Emirates; January 18, 2017 – Masdar, Abu Dhabi’s renewable energy company, has selected International Finance Corporation (IFC), a member of the World Bank Group, to oversee the funding of the largest solar power plant in the Hashemite Kingdom of Jordan, a 200-megawatt (MW) photovoltaic facility being developed by the wholly owned Masdar subsidiary Baynouna Solar Energy Company (BSEC).

At Abu Dhabi Sustainability Week today, Mohamed Jameel Al Ramahi and Niall Hannigan, Chief Executive Officer and Chief Financial Officer of Masdar, respectively, signed a finance mandate letter with Eric Becker, IFC Manager of Infrastructure for the Middle East & North Africa.

Today’s announcement follows the signing of a power purchase agreement (PPA) in October between Masdar and National Electric Power Company, Jordan’s state electricity provider.

“We are delighted to be working with IFC in the realisation of Jordan’s largest solar plant, further consolidating Masdar’s significant presence in the country,” said Niall Hannigan. “Our partnership with IFC will ensure that this landmark project will be developed according to the highest standards of financial best practice, while illustrating the strength of investor confidence in renewable energy.”

Expected to break ground later this year, the 200MW plant will be built 10 kilometres outside the Jordan capital of Amman. Once connected to the national grid, it will supply the annual power needs of around 110,000 homes and displace an estimated 360,000 tonnes of carbon dioxide emissions each year.

“The Middle East and North Africa continues to face serious power shortages, and there is now even greater pressure on infrastructure services,” said Erik Becker. “We have been working with Masdar, a key partner, since 2013 and welcome this opportunity to further support the development renewable energy generation capacity across the region.”

The project follows the inauguration of the 117MW Tafila wind farm in Jordan in December 2015, the Middle East’s largest onshore wind power development. Masdar has a 31 per cent stake in Tafila with InfraMed (50%) and EP Global Energy (19%).

The combined output of Tafila and the Baynouna solar project will account for nearly 18 per cent of the 1.8 gigawatts (GW) of renewable energy Jordan plans to install by 2020.

Masdar’s Clean Energy division is a leading developer and operator of utility-scale, grid-tied projects; applications providing energy access to communities away from the electricity grid; and carbon abatement projects. Since 2006, Masdar has invested in renewable energy projects with a combined value of US$8.5 billion; Masdar’s share of this investment is US$2.7 billion.

Masdar’s renewable energy projects span the UAE, Jordan, Mauritania, Egypt, Morocco, the UK, Serbia and Spain. The electricity generating capacity of these projects, which are either fully operational or under development, is 2.7 gigawatts (GW) gross.