OPIC Board Approves $270 Million for Electricity Project in Jordan
September 17, 2012
240MW plant to provide reliable energy during peak usage periods
WASHINGTON, D.C. – The Board of Directors of the Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, approved $270 million in financing for construction of an approximately 240-megawatt electrical power plant in Jordan that will provide reliable energy for the country during peak usage periods.
AES Levant Holdings BV Jordan Psc, an affiliate of the AES Corporation, a Virginia-based power company, will use the OPIC investment guaranty to construct and operate the tri-fuel electrical plant on an unused portion of the Amman East Power project site, a rural area 15 miles outside of Amman, for which OPIC provided a $70 million loan in January 2007. AES Levant Holdings BV Jordan Psc is owned under a shareholding structure between Mitsui and AES similar to the Amman East Power projects. Electricity generated by the plant will be purchased by the National Electric Power Company (NEPCO) of Jordan through a power-purchase agreement with AES Levant Holdings BV Jordan Psc.
Called a ‘peaker plant,’ the facility will provide electricity during periods of peak electricity usage, such as evening hours and summer months.
The project will also help Jordan meet growing demand for electricity: without continued investment in the energy sector, Jordan will be unable to meet its projected demand for electricity of 4,900 MW by 2020 – 48 percent higher than its current generation capacity. Enhancing electricity generation capacity has been a priority for the Jordanian government after the Arab Spring decreased the country’s ability to import gas from Egypt.
“Ensuring that Jordan’s citizens have reliable electricity at all times, even during peak usage periods, is a critical service. This project will help Jordan meet that need even as its electricity demand continues to grow,” said OPIC President and CEO Elizabeth Littlefield. “We are pleased to support these services for the people of Jordan and to partner again with AES to make this project a reality.”
The 2007 Amman East Power project was the first independent power provider project to be implemented under the Private Sector Power Generation Policy of Jordan, designed to establish an environment for the sustainable development of the country’s power industry and improve the quality and efficiency of its electric services in the country.
OPIC is the U.S. Government’s development finance institution. It mobilizes private capital to help solve critical development challenges and in doing so, advances U.S. foreign policy. Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets catalyzing revenues, jobs and growth opportunities both at home and abroad. OPIC achieves its mission by providing investors with financing, guarantees, political risk insurance, and support for private equity investment funds.
Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers. OPIC services are available for new and expanding business enterprises in more than 150 countries worldwide. To date, OPIC has supported more than $200 billion of investment in over 4,000 projects, generated an estimated $75 billion in U.S. exports and supported more than 276,000 American jobs.