THE LOCAL COMPANY FOR WATER AND SOLAR PROJECTS PSC (FMO-49757)

Countries
  • Jordan
Where the impacts of the investment may be experienced.
Financial Institutions
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Nov 11, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 22.57 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ FMO website

Updated in EWS Apr 9, 2018


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Project Description

WHO IS OUR CLIENT

The Local Company for Water and Solar Energy Projects PSC is a company established for the development, construction and operations of a 50MW solar photovoltaic (PV) power plant, located in the King Hussein Bin Talal Development Area, 60km northeast of Amman.

FUNDING OBJECTIVE

The estimated project cost for the construction of the solar plant is USD 72 million. FMO is participating in a debt financing package mobilized by EBRD. All output generated by the project will be sold to off-taker NEPCO under a 20-year Power Purchase Agreement (PPA). The project is part of the Government of Jordan's Renewable Energy Program, which aims to increase renewable energy contribution to 10 percent of the country's generation mix by 2020.

WHY WE FUND THIS PROJECT

Once operational, this power plant will generate approximately 135GWh annually, serving approximately 52,000 customers based on a per capita consumption of 2,580 kWh. The project serves to meet the growing demand for electricity in Jordan. By generating electricity from a renewable energy source this solar plant is expected to avoid the emission of approximately 76 kilo tons of CO2 per annum. The project contributes to a diversification of Jordan's fuel mix and provides for energy security by generating electricity from a domestic resource. It contributes to reducing the marginal cost of electricity in the country by generating electricity at a tariff close to half the long term cost of generation in Jordan.

Investment Description
  • Netherlands Development Finance Company (FMO)
Contact Information

FMO
South Africa
+27 11 507 2500
joburg-office@fmo.nl

 

ACCOUNTABILITY MECHANISM OF FMO

Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW) . A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism.