Announcement of Jordan Receives Five Million Dollars for Electric Power on June 10, 1975

"' <:<4>, 'r • INTERNATIONAL DEVELOPMENT ASSOCIATION (,~) 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA NEWS RELEASE NO. 75/40 JUNE 10, 1975 JORDAN RECEIVES $5 MILLION FOR ELECTRIC POWER A credit of $5 million from the International Development Association (IDA), an affiliate of the World Bank, will assist Jordan in financing a power develop~ ment project. The project will help to make the Jordan Electricity Authority (JEA) an efficient public utility providing economic and reliable service, and • removing capacity shortages. It includes a third 33-MW steam electric unit to be installed at the Hussein Power Station at Zarqa: reconditioning of the diesel- electric power station at Marqa; and a power development study for southern Jordan. The project is scheduled to be completed in 1978 at a total estimated cost of $22 million. The IDA credit to Jordan is for a term of 50 years, including 10 years of grace. It is interest-free, except for a service charge of 3/4 of 1% to meet IDA's administrative costs. The proceeds of the credit will be relent to JEA for 25 years including 3-1/2 years of grace, with interest at 8-1/2% per annum. The credit is the second from IDA in support of electric power development. A credit of $10.2 million together with a Kuwait loan of equal amount, extended in 1973, are jointly assisting the power sector to change over from diesel to steam power generation and to add 78 megawatts of generating capacity. • I • Note: Honey figures are expressed in US dollar equivalents.  T E CHNI C A L DA T A PROJECT: COUNTRY: Second Hussein Thermal Power Jordan • TOTAL COST: $22 million IDA FINANCING: $5 million standard IDA terms OTHER FINANCING: Jordan Electricity Authority and other bilateral sources of financing. IMPLEMENTING ORGANIZATION: Jor.dan Electricity Authority P.O. Box 2310 Amman, Jordan PROJECT DESCRIPTION: The project includes: a) a third 33-MW steam-electric unit to be installed at the Hussein Power Station at Zarqa; b) reconditioning of the diesel-electric power station at Marqa, owned by • the Jordan Electric Power Company of Amman; and c) a Power Development Study for southern Jordan. PROCUREMENT: All contracts to be financed from the proposed credit (except for consulting services) will be awarded on the basis of international competitive bidding, consistent with the Bank/IDA Guidelines for Procurement. JEA is exempt from paying import duties. A preference of 157. or customs duty applicable to non-exempt importers, whichever is less, will be granted to Jordanian manufacturers. CONSULTANTS: About 14 man-years of consultants' services will be needed for the design and supervision of the project and for a PfWer development study for southern Jordan. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 15% Internal Financial Rate of Return. June 1978 0 •