Announcement of Jordan Borrows Fifteen Million Dollars for Electric Power Development on April 16, 1979

. . " . FOR IMMEDIATE RELEASE •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 79/76 Apr i l 16, 1979 JORDAN BORROWS $15 MILLION FOR ELECTRIC POWER DEVELOPMENT The World Bank announced today the approval of a loan of $15 mill ion to assist a third power project in Jordan. The project will help meet the increase in power demand in Jordan and provide additional power to some 46,000 inhabitants in 33 villages in central Jordan, which has at present the lowest access to electricity in the country. The World Bank loan will help finance the construction of about 225 kilometers of 132-kV double-circuit transmission 1 ines; five substations with a capacity of about 221 MVA, and extension of two existing substations; • a system operations control center with power line carrier and related communication equipment. The $53.5 mill ion project is an integral part of the Jordan Electricity Authority's (JEA) i979-82 development program for meeting the rising power needs of Jordan. In 1977, the per capita consumption of electricity in Jordan was 247 kWh compared with 162 kWh in 1974. It is projected that per capita consumption would rise to 932 kWh in 1985. To meet this expected growth, JEA would add some 90 MW of new generating capacity before 1982 and about 70% of the total population will have access to public power sup- ply. In 1977, only about 50% of the total population had such access. The project wi 11 meet th.e power needs of three major tndus.trial projects: the potash complex at Ghor Safi, the phosphate rock mining works at El Hasa, and the cement plant at Rashadiya. It will also meet the re- quirements of the distribution loads in the rural areas in central Jordan from the national grid. After completion of the project, access to public electricity supply !nth~ central region would increase from 30% to about 50% of the region's population. The project also aims at continuing the Bank's assistance for institution building within JEA and at effecting further improvements in the institu- tional and financial arrangements in the power subsector. Consultant serv- ices for project engineering and construction, and a training program for JEA 1 s staff will also be provided. • Co-financing amounting to $0.5 million will be provtded by the Arab Fund . The Bank loan to Jordan is for a term of 17 years, including 4 years of grace, with interest at 7% per annum. NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T ECHNI CAL D A T A PROJECT: COUNTRY: TOTAL COST: Third Power The Hashemite Kingdom of Jordan $53. 5 mi 11 ion • BANK FINANCING: $15 million, for 17 years, including 4 years of grace, with interest at 7% per annum. OTHER FINANCING: Government of Jordan and Jordan Electricity Authority (JEA), $25 million; customer contributions, $13 mill ion; and Arab Fund, $0~5 million. IMPLEMENTING ORGANIZATION: Jordan Electricity Authority (JEA) P. 0. Box 2310 TELEX: 1 259 JO Amman JEASAK Hashemite Kingdom of Jordan PROJECT DESCRIPTION: It comprises: a) construction of about 225 kilometers of 132-kV double-circuit transmission lines; b} five substations, with a capacity of about 221 MVA and extension of two existing sub- stations; and 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. PROCU.REMENT: Procurement of goods and works to be financed by the proceeds of the Bank loan will be through international competitive bidding (ICB) under Bank guidelines. Contracts for transmission lines, substations, power transformers, the operations control center, and rural electri- fication respectively will be executed on a "supply-and-erect" basis. Although little local participation is expected in contracts which might be financed from the Bank loan, a preference of 15% of the c.i .f. cost or actual import duties, whichever is lesser, will be granted to Jordanian manufacturers. CONSULTANTS: Consultant services will be required for the superv1s1on of construction, in procurement, erection and inspection of major equipment. Consultants will also assist JEA in establishing operating rules for the transmission network and the system control center. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 13% 1982 - 0 - •