Finance mandate letter signed today at Abu Dhabi Sustainability Week 2017
Abu Dhabi, United Arab Emirates; January 18, 2017 – Masdar, Abu Dhabi’s renewable energy company, has selected International Finance Corporation (IFC), a member of the World Bank Group, to oversee the funding of the largest solar power plant in the Hashemite Kingdom of Jordan, a 200-megawatt (MW) photovoltaic facility being developed by the wholly owned Masdar subsidiary Baynouna Solar Energy Company (BSEC).
At Abu Dhabi Sustainability Week today, Mohamed Jameel Al Ramahi and Niall Hannigan, Chief Executive Officer and Chief Financial Officer of Masdar, respectively, signed a finance mandate letter with Eric Becker, IFC Manager of Infrastructure for the Middle East & North Africa.
Today’s announcement follows the signing of a power purchase agreement (PPA) in October between Masdar and National Electric Power Company, Jordan’s state electricity provider.
“We are delighted to be working with IFC in the realisation of Jordan’s largest solar plant, further consolidating Masdar’s significant presence in the country,” said Niall Hannigan. “Our partnership with IFC will ensure that this landmark project will be developed according to the highest standards of financial best practice, while illustrating the strength of investor confidence in renewable energy.”
Expected to break ground later this year, the 200MW plant will be built 10 kilometres outside the Jordan capital of Amman. Once connected to the national grid, it will supply the annual power needs of around 110,000 homes and displace an estimated 360,000 tonnes of carbon dioxide emissions each year.
“The Middle East and North Africa continues to face serious power shortages, and there is now even greater pressure on infrastructure services,” said Erik Becker. “We have been working with Masdar, a key partner, since 2013 and welcome this opportunity to further support the development renewable energy generation capacity across the region.”
The project follows the inauguration of the 117MW Tafila wind farm in Jordan in December 2015, the Middle East’s largest onshore wind power development. Masdar has a 31 per cent stake in Tafila with InfraMed (50%) and EP Global Energy (19%).
The combined output of Tafila and the Baynouna solar project will account for nearly 18 per cent of the 1.8 gigawatts (GW) of renewable energy Jordan plans to install by 2020.
Masdar’s Clean Energy division is a leading developer and operator of utility-scale, grid-tied projects; applications providing energy access to communities away from the electricity grid; and carbon abatement projects. Since 2006, Masdar has invested in renewable energy projects with a combined value of US$8.5 billion; Masdar’s share of this investment is US$2.7 billion.
Masdar’s renewable energy projects span the UAE, Jordan, Mauritania, Egypt, Morocco, the UK, Serbia and Spain. The electricity generating capacity of these projects, which are either fully operational or under development, is 2.7 gigawatts (GW) gross.
About Abu Dhabi Sustainability Week
The annual Abu Dhabi Sustainability Week (ADSW), hosted by Masdar, is an Abu Dhabi government initiative that aims to address the interconnected challenges of clean energy, water and sustainable development. Anchored by the World Future Energy Summit, ADSW features a series of complementary conferences, exhibitions and events, including the general assembly of the International Renewable Energy Agency, the Award Ceremony of the Zayed Future Energy Prize, the International Water Summit, EcoWASTE and The Festival@Masdar City. ADSW is the largest gathering on sustainability in the Middle East, attracting global policy makers, industry thought-leaders and clean-tech innovators among more than 35,000 attendees representing around 170 countries.
Masdar is Abu Dhabi’s renewable energy company which works to advance the development, commercialisation and deployment of clean energy technologies and solutions. The company serves as a link between today’s fossil fuel economy and the energy economy of the future. Wholly owned by the Mubadala Development Company PJSC, the strategic investment company of the Government of Abu Dhabi, Masdar is dedicated to the United Arab Emirates’ long-term vision for the future of energy and water.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
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