Jordan power site set for $134m upgrade
Loan agreement signed with Kuwait to finance expansion project
Jordan’s Al-Samra Power Generation Company has entered into a US $134 million loan agreement with the Kuwait Fund for Arab Economic Development (KFAED) to help finance the third expansion stage of the Al-Samra power site. A related Guarantee agreement was finalised between Jordan and Kuwait at the same time.
The expansion project is planned to include the procurement and installation of a 140MW steam turbine unit to work on heat recovery from the two simple cycle gas turbines at the plant. Jordan is currently ramping up its electricity capacity to meet rising demand, with rising fuel prices forcing the Kingdom to rely heavily on electricity imports. The country is also engaged on the preliminary stages of a nuclear programme which has been delayed after security concerns raised by the conflict in Syria.
Jordan’s Minister of Finance, Suleiman Al-Hafez, has said that the loan maturity is 24 years - with a grace period of four years - and will be repaid over 40 installments. It is the 26th loan provided by the KFAED to Jordan, with the total loaned now standing at $554 million.