Jordan - Third Power Project

Document of DuLt CO P XY The World Bank FOR OFFICIAL USE ONLY Report No. P-2476-JO REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE HASHEMITE KINGDOM OF JORDAN FOR A THIRD POWER PROJECT March 28, 1979 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit Jordan Dinars (JD) JD 1 - 1,000 fils JD 0.30 US$1.00 JD 1.00 US$3.30 GLOSSARY OF ABBREVIATIONS IDECO - Irbid District Electric Company JEA - Jordan Electricity Authority JEPCO - Jordanian Electric Power Company JNEC - Jordan National Energy Committee JVA - Jordan Valley Authority NPC - National Planning Council Financial Year - Calendar Year  FOR OFFICIAL USE ONLY JORDAN THIRD POWER PROJECT LOAN AND PROJECT SUMMARY Borrower: The Hashemite Kingdom of Jordan. Beneficiary: Jordan Electricity Authority (JEA). Amount: US$15.0 million. Terms: 17 years including 4 years of grace at an interest rate of 7 percent per annum. Relending Terms: The Government would relend the entire loan proceeds to JEA on the same terms as those of the Bank loan; JEA would bear the foreign exchange risk. Project Description: The Third Power Project is an integral part of JEA's 1979-1982 Development Program for supplying the power needs of Jordan. The project represents an important stage in the progress of the power sector towards the long range objective of progressively interconnecting the Northern, Central and Southern regions of Jordan into an economic and reliable national power system serving the whole country. The primary objective of the project would be to supply the power needs of the potash complex at Ghor Safi, the phosphate rock mining works at El Hasa, the cement plant at Rashadiya, and the rural distribution loads in central Jordan from the national power grid. In addition, the project provides for con- tinued Bank assistance for institution building within JEA, and for further improvements in the institutional and financial arrangements in the power sector. The project would comprise: (a) about 225 km of 132-kV double-circuit transmission lines; (b) five substations, with a capacity of about 221 MVA and extension of two existing substations; (c) a system operations control center, with power line carrier and related communication equipment; (d) electrification of 33 villages in the Central Region of Jordan; (e) consulting services for project engineering and construction; and (f) a training program for JEA's staff. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - The project will meet the power needs of three major in- dustrial projects and the power demand of some 46,000 inhabitants in 33 villages in central Jordan, this region's population has at present the lowest access to electricity in the country. The project would also foster the development of an integrated national power system which implies substantial benefits resulting from economic power supply and improved system reliability. No particular project risks are envisaged. Project Costs: Local Foreign Total -----US$ Thousand------ Transmission Lines 8,517 12,776 21,293 Substations 4,920 9,325 14,245 Control Center 111 334 445 Rural Electrification 2,274 2,907 5,181 Consulting Services 926 869 1,795 Training 16 66 82 Total Base Cost 16,764 26,277 43,041 Contingencies: Physical 1,899 2,027 3,926 Price 3,281 3,298 6,579 TOTAL 21,944 31,602 53,546 Financing Plan: Local Foreign Total ----- US$ Million