Project detail - FALCON MAAN SOLAR POWER LLC

FALCON MAAN SOLAR POWER LLC

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Who is our client

Falcon Ma'an for Solar Energy is a company established for the development, construction and operations of a 21MW solar photovoltaic (PV) power plant project located in the Ma'an Governate (MDA), 218km south of the capital Amman, Jordan.

Funding objective

The project has an estimated cost of US$50 million. FMO is participating in the debt financing mobilized by IFC by providing a senior loan of US$7.5 million. All output generated by the project will connect to a newly built substation in MDA and be sold to 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

This project will generate over 43GWh (at P50), meeting the growing demand for electricity in Jordan, serving approximately 20,000 customers annually based on a per capita consumption of 2,100 kWh. It will also diversify the fuel mix for Jordan and provide for energy security by generating electricity from a domestic resource, as well as displace thermal power that has a marginal cost of approximately 30% above the tariff, thus helping to alleviate the losses borne by NEPCO. Finally, the project will avoid the emission of approximately 24,882 tons of CO2 per annum.

Region
Asia
Country
Jordan
Sector
Energy
Signing date
9/30/2014
Total FMO financing
USD 7.50 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B