MIGA Supports Solar Power Generation in Jordan

MIGA Supports Solar Power Generation in Jordan
Project brings cleaner, more reliable energy to country's energy mix

View the press release in Arabic

Washington, DC, June 24, 2015—The Multilateral Investment Guarantee Agency (MIGA), the political risk insurance and credit enhancement arm of the World Bank Group, announced today it is backing the development, construction, and operation of four solar power projects in Jordan, adding 50 megawatts of clean, renewable energy generation capacity to the country's grid.

The plants in Ma'an and Mafraq benefit from a 20-year power purchase agreement with the Jordanian state-owned utility, National Electric Power Company (NEPCO). MIGA's investment guarantees of $15.6 million cover equity investments by private-equity fund Adenium Solar Jordan for up to 20 years against the risks of transfer restriction, expropriation, breach of contract, and war and civil disturbance.

The plants will help diversify Jordan's energy mix, improving energy security and reducing reliance on fuel imports. The project forms part of the largest private sector-led solar initiative in the Middle East and North Africa and is expected to generate significant demonstration effects for subsequent renewable energy projects in the country. The World Bank Group's International Finance Corporation (IFC) is also supporting the projects as a lender.

"Most of Jordan's existing power capacity comes from fossil fuels—and much of its infrastructure is aging, inefficient, and vulnerable to supply disruptions," said Wassef Sawaf, CEO of Adenium Energy Capital. "We hope to help the country transform its energy sector and appreciate MIGA's support as we move forward."

"We expect high development impact from these projects for three reasons," said Keiko Honda, MIGA's Executive Vice President and CEO. "First, Jordanians will get cleaner and more reliable energy. Also, the projects dovetail with the government's energy plan to reduce strain on the current account from energy imports." She continued, "In addition, by insuring Adenium—a private-equity fund that focuses on alternative energy—we're supporting a business model that we hope will be used increasingly to help tackle climate change."

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MULTILATERAL INVESTMENT GUARANTEE AGENCY
A Member of the World Bank Group
1818 H Street, NW, Washington, DC 20433

MIGA Contact:
Mallory Saleson, MIGA
Tel: +1 202 473-0844
E-mail: msaleson@worldbank.org

Rebecca Post, MIGA
Tel: +1 202-473-1964
E-mail: rpost@worldbank.org

Cara Santos Pianesi, MIGA
Tel: +1.202.458.2097
E-mail: csantospianesi@worldbank.org