Project finance contract formed for new photovoltaic project in Jordan

Jan. 22, 2018

Mitsui & Co., Ltd. and major U.S. power company AES Corporation (AES) have received an order for an IPP project that will be Mitsui's third in Jordan. On January 19, 2018, a project finance contract was signed through a power project company established with AES, procuring financing of US$40 million.

The project will see the construction of a 52MW plant in Al Manakher, located 25km east of Amman, the capital of the Hashemite Kingdom of Jordan. The plant is expected to begin commercial operations in 2019, with plans to sell the entire electricity output on a 20-year power purchase contract with Jordan's National Electric Power Company.

Under the finance contract, US development finance institution Overseas Private Investment Corporation and Sumitomo Mitsui Banking Corporation (SMBC) have agreed to project finance of US$40 million, with Nippon Export and Investment Insurance (NEXI) providing loan insurance for the portion of finance provided by SMBC.

Mitsui has undertaken two other IPP projects with AES, in 2006 (Jordan's first IPP) and 2012 (Jordan's fourth). Including the latest project, this represents around 18% of the total 700MW power generation in Jordan.

Mitsui has IPP assets worldwide, and is involved in both the development and management of power plants. The company is strengthening its wind, solar and other renewable energy operations, and by continuing to play a central role in new project developments that draw on Mitsui's capabilities, aims to improve its portfolio and strengthen earnings.

The Japanese government held leadership summits with Jordan in July and September 2017, expressing its intention to contribute to the stable social and economic development of the nation. Through this project, Mitsui will contribute to the stable supply of power in Jordan while promoting the adoption of renewable energy.

The solar panels to be deployed (provided by JA Solar Holdings Co., Ltd)The solar panels to be deployed (provided by JA Solar Holdings Co., Ltd)