Saudi-based Acwa Power has signed financial agreements with two European banks - European Bank for Reconstruction and Development (EBRD) and Netherlands Development Finance Company (FMO) - for the development of a 60.3 MW solar photovoltaic (PV) independent power plant in Mafraq, 50 km north-east of Amman in Jordan.

Acwa Power is a developer, investor, co-owner and operator of a portfolio of power generation and desalinated water production plants currently with presence in 11 countries including in the Middle East and North Africa (Mena), Southern Africa and South East Asia regions.

The transaction includes a $27-million loan from each of the two banks EBRD and FMO.

On completion, Acwa Power will provide electricity to the Jordanian water and solar energy projects company at the lowest tariff (0.043 JD/kWh equal to ca. 6.13 USD cents/kWh) in the Round II of the Photovoltaic Procurement program of the Ministry of Energy and Mineral Resources.

Acwa Power Mafraq will be included in the assets of ACWA Power RenewCo, a new company created to group the Saudi firm’s existing renewable energy portfolio, which already exceeds 1 GW. The plant is part of a 150MW solar complex coming up aat Mafraq.

This project will also result in 1.5 million ton of CO2 saved over 20 years, equivalent to 79,000 tons of CO2 per year.

The power purchase agreement and the transmission connection agreement (TCA) for the project were signed by the Project Company with Nepco in January 2016, followed by the Government Guarantee Agreement (GGA) with the Ministry of Finance in April.

Thamer Al Sharhan, the managing director of Acwa Power and chairman of Cegco, said: "This project is yet another demonstration of our commitment to the socio-economic development of Jordan. We capitalised on a unique opportunity to enhance our renewable footprint in Jordan and more importantly, by leveraging the platform that Cegco offers."

"We are proud to be responsible for reliably delivering clean energy at the lowest ever tariffs for Jordan," he added.

Rajit Nanda, the chief investment officer of Acwa Power said it was an important project for the company in Jordan.

"It adds up to our presence as one of Jordan’s largest power generators (through CEGCO, and the ACWA Power Zarqa - which is nearing execution), and is yet another demonstration of our commitment to the country," remarked Nanda.

"The partnership with EBRD for funding this project has been a critical component in helping us support Nepco by providing record low tariffs for Renewable energy in Jordan," he added.-TradeArabia News Service