IFC leads Jordanian solar plant financing

The World Bank’s private investment arm has returned to Jordan after financing its first wind and solar projects in the country in 2013 and 2014.

A 50MW solar plant in Jordan has reached financial close after the International Finance Corporation led a group of development institutions in providing a total debt package of $76 million.

The Mafraq solar plant, to be developed by Spain’s Fotowatio Renewable Ventures, is the first solar facility to secure financing in Jordan’s second 200MW solar tender, at a tariff of $0.069 per kWh. Another three projects are yet to close financing after they were awarded in last year’s tender.

The IFC, in conjunction with the Canadian government, provided $53.4 million towards the project. It was joined by Europe Arab Bank, which lent $8 million, while the Netherlands’ FMO and Finnish development institution FinnFund contributed $12 million and $5 million respectively. The same consortium, plus OPEC and Arab Bank, had previously financed seven solar projects in Jordan in 2014.

“In Jordan, the demand for power is growing rapidly,” said Mouayed Makhlouf, IFC’s director for the Middle East and North Africa. “Privately owned power companies, with their expertise and financial clout, have a vital role to play in bringing new generation capacity online at a lower cost.”