Jordan - Energy Development Project

Document Of The World Bank FOR OMCIL USE ONLY Rhpwt No. P-3685-JO REPOlP AND RECOUNENDATION OF TEM PREIENT OF THE INTERNATIONAL BANK FOR REC-NSTRUCTION AmD DEVEPM TO THE EXECuTIVz DIRECTORS OR A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$30 MION TO THE sNENITE KINGDoM OF JORDAN POR DN ENER DEVELOPMENT PRI.)rCT November 14, 1983 XuemI t a _dd uidmi may be mEd by hu ly lo dh pufemmee if I hir mdial 1dim lb =my Be gbmulism be itac W Wed 1 _ _ I  CURRENCY EQUIVALENTS Calendar 1982 June 1983 Curt ency UI<_, Jordan dinar (JD) JD US $1.00 JD 0.35 0.36 JD 1.000 US$2.82 2.80 Exchange rate used in the Appraisal Report JD lUS$2.8l Fiscal Year - Calendar Year ABBREVIATIONS AND ACRONYMS EPU Energy Planning Unit IDECO . Irbid District Electricity Company. JEA- Jordan Electricity Authority JEPCO Jordanian Electric Power Company JPRC Jordanian Petroleum Refinery Company LPG Liquified Petroleum Gas MIT Ministry of Industry and Trade WVA Megavolt ampere NEC National Energy Comuittee NPC - National Planning Council NRA Natural Resources Authority PD Petroleum Department at NRA RSS R oyal Scientific Society toe tons of oil equivalent Tapline Trans-Arabian pipeline  FOR OFFICIAL USE ONLY HASHEMITE KINGDOM OF JORDAN ENERGY DEVELOPMENT PROJECT Loan and Project Summary Borrower: The Hashemite Kingdom of Jordan Beneficiaries; Jordanian Electric Power Company (JEPCO) Irbid District Electricity Company Limited (IDECO) Amount; US$30 million equivalent Terms: 17 years, including four years of grace at the standard variable interest rate. Relending Terms: Part of the proceeds of the loan will be relent to JEPCO ($13.5 million) and IDECO ($8.0 million) on the same terms as the proposed loan. JEPCO and IDECO would bear the foreign exchange risk. Project Description: The proposed project would assist power subsector development as well as contribute to petroleum exploration and the improvement of energy efficiency and planning. It has the following components: (i) Power Distribution. This component will promote the expansion and rehabilitation of the urban distribution networks in JEPCO's and IDECO's concession areas and the electrification of 20 villages in the Governorates of Amman and Balka and 55 villages in the Governorate of Irbid. Consultant services will be provided to assist JEPCO in the preparation of detailed engineering designs, supervision of construction and erection, and to assist IDECO in strengthening its financial planning and control capability. (ii) Petroleum Exploration. This component includes consultant services, training and purchasing of equipment in order to improve exploration, drilling and production activities. (iii) Energy Conservation. This component covers the acquisition of equipment to determine the energy efficiency of capital equipment. It includes consulting services for undertaking energy audits and project preparation in selected industries with potential for energy saving. The component also covers short-term training abroad, and advisory services to Energy Planning Unit (EPU). This document has a rewicred distribution and may bee used by recipients only in the performance of| !their ofriaal dutieL Its contents Mnay not otherwise be discloged without World Bank authoriztion.|  - ii - (iv) Renewable Energy. This component will provide consultant services, training for Royal Scientific Society (RSS) staff and the acquisition of equipment to further the knowledge and development of alternative energy sources, specifically solar energy. (v) Energy Planning, This component consists of the acquisition or computer equipment, provision of consultant services and short-term training to promote energy planning and conservation and policy formulation. The principal beneficiaries would be the urban and rural population of Amman, Balka and Irbid Governorates who will benefit from electrification or reliable power distribution. No risks are associated with the project other than those normally arising from petroleum exploration. Project implementation will require a high degree of coordination, and appropriate measures to ensure this are embodied in the project (para. 49). Estimated Cost: Local Foreign Total -S ~~~~~~~~~~~~Million--- Power Distribution Component JEPCO 8.4 13.3 21.7 IDECO 5.9 14.1 20.0 Petroleum Exploration Component 0.9 4.7 5.6 Conservation Component 0.4 2.9 3.3 Renewable Energy Component 0.6 1.5 2.1 Energy Planning Component 1.0 1.2 2.2 Base Cost 17.2 37.7 54.9 Physical Contingencies 0.8 1.2 2.0 Price Contingencies 3.7 6.4 10.1 Total Project Cost 1/ 21.7 45.3 =7.O Interest During Construction - 1.0 1.0 Total Financing Required 21.7 46.3 68.0 Financing Plan; Government of Jordan 3.2 - 3.2 World Bank Loan - 30.0 30.0 JEPCO and IDECO 18.5 13.5 32.0 EEC - 0.5 0.5 Italian Government 0.8 0.8 USAID 1.2 1.2 UNqDP 0.3 0.3 21.7 46.3 68.0 I/ Does not include tax or import duties, from which the project is exempt.  - iii - Estimated Disbursementi: Bank FY 1984 1985 1986 1987 --------- $illio