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FMO supports the development of a utility-scale solar park (50 MW) in Jordan that will supply 42,000 households with affordable, clean energy and avoid 100,000 tonnes in annual CO2 emissions. The project, located in the Ma’an Governorate (~200 km south of Amman), will be the first internationally financed utility-scale solar park in Jordan that deploys locally manufactured PV modules.
FMO is acting as lead arranger for the USD 59.2 mln senior financing package to Al Husainiyah Power Generation Company, the project company which is owned by United Arab Emirates-based AMEA Power (70%), and Jordan-based Philadelphia Solar (30%). In addition to its own participation of USD 29.6 mln, FMO is mobilizing an additional USD 29.6 mln from DEG, the German Development Finance Institution. The tenor of the loan is 18.5 years.
The solar park will source over 200 thousand 330Wp panels that will be manufactured in Philadelphia Solar’s manufacturing facility in Al-Qastal Industrial Area, near Amman. As such, the project will support the sustainability and expansion of this facility, along with the good-quality jobs it provides to approximately 375 employees, including 26 female employees in administrative and managerial positions.
In the mid-2000s, Jordan started a systematic power sector transformation, shifting power generation from costly, imported liquid fuel and state-owned thermal power plants to a mix of modern, privately owned and operated gas-fired and renewable energy power plants. The project, another important milestone in this process, will help Jordan further enhance the security and affordability of its power sector by reducing its reliance on expensive imported fossil fuels.
Linda Broekhuizen, Chief Investment Officer at FMO, said: “This project perfectly fits with our strategy. Not only is it 100 percent green, it also has a high developmental value because the project will source its PV panels from a local manufacturer, thereby supporting hundreds of good quality jobs. For FMO, this transaction also represents another successful collaboration with DEG under the Friendship Facility, a partnership we are keen to expand to better serve our shared objectives.”
Hussain Al Nowais, Chairman of AMEA Power, said: “AMEA Power believes in Jordan and the government’s commitment to increase renewable energy’s share in the country’s power production. Through this project, we are proud to support Jordan’s vision to reduce its reliance on imported fuel and limit its carbon footprint. The country is an important market for us as we recently also reached financial close on a 50MW wind project there and we hope that this solar project will stimulate further investments in renewable energy projects in Jordan.”
A.R Shehadeh, Chairman of Philadelphia solar, said: “Philadelphia Solar today achieved a new milestone by the support of all stakeholders and we are proud if this great partnership that promotes sustainability, job creation and local content support”