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IFC arranges $188m financing for 248MW Baynouna solar project in Jordan

EBR Staff Writer Published 17 January 2018

Jordan’s new 248MW Baynouna solar photovoltaic (PV) power plant has secured a financing package of up to $188m arranged by IFC, a member of the World Bank Group.

The solar plant is being developed by Abu Dhabi Future Energy Company (Masdar) east of Amman.

To be built with an investment of $260m, the Baynouna solar plant is slated to be completed in the first quarter of next year. Upon being operational, the solar plant is expected to meet the annual power consumption needs of around 110,000 homes.

The project’s financing package includes a loan of $54m from IFC and $134m arranged from other senior lenders that includes a parallel loan from Japan International Cooperation Agency (JICA).

Other lenders for the solar plant include FMO, a Dutch Development bank and Europe Arab Bank as B lenders. The OPEC Fund for International Development (OFID) and DEG, a German development bank had agreed to become parallel lenders for the Baynouna solar project.

Masdar CEO Mohamed Jameel Al Ramahi said: “The diversity of financial institutions supporting Baynouna illustrates both IFC’s successful track record with the private sector in emerging markets over the last 60 years and the strength of its commitment to best practice.

“With backing now secured from lenders in Asia, Europe and the Middle East, the significant global interest in commercial renewable energy in Jordan and the MENA region is clear.”

The Baynouna solar facility is expected to provide power well under the average cost of electricity in Jordan, thereby further reducing the cost of long-term power generation in the country.

IFC Middle East and North Africa director Mouayed Makhlouf said: “Renewable energy is a pillar of IFC's work, in the region and beyond. We have already financed several major projects, encouraging private investment in the sector and pioneering innovative financing models.”

Elsewhere, in Dominican Republic, IFC with support from the Canadian government has closed a financing package of $80m for the construction and operation of a 50MW wind farm named Parques Eólicos del Caribe.