Announcement of Jordan to Receive World Bank Loan for Electric Power Development on May 11, 1981

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. 81/86 May 11 , 1981 JORDAN TO RECEIVE WORLD BANK LOAN FOR ELECTRIC POWER DEVELOPMENT A fourth power project in Jordan wi 11 be supported by a $25 million loan, the World Bank announced today. The project, to be implemented by the Jordan Electricity Authority (JEA) and the Jordanian Electric Power Company (JEPCO), will help meet Jordan's rapidly growing demand for electric power and improve the quality of the country's existing power supply services at least cost. The World Bank loan will help finance the construction of about 160 kilometers of 132-kV transmission lines to connect the towns of Aqaba, Quweira, East Ghor, Ashrafiya, and Sahab with the national transmission network; five new transformer substations, and the extension and reinforcement of five existing ones, • with a total capacity of about 619 MVA; the extension of the urban electrical distribution network to include three low-cost housing developments being built for 28,000 inhabitants; and the electrification of about 50 villages. The project's rural electrification component will benefit the 23,000 inhabitants of about 20 villages around Amman and 30 villages in the central and southern regions of Jordan, which at present have the least access to electricity in the country. JEPCO and JEA will also receive funds for staff training programs. Other consultant services are also provided under the project for engineering and con- struction, and organization and management assistance for JEPCO. Technical assistance will also be provided to Jordanian authorities and institutions for energy sector development. The Kuwait Fund is contributing $18 million to the total cost of the project amounting to $81.12 million. The World Bank loan is for 17 years, including four years of grace, with interest at 9.6% per annum. ~OTE: Money figures are expressed in U.S. dollar equivalents . • FORM NO. 1121 (5-76) T E C HN I CA L DA T A PROJECT: COUNTRY: TOTAL COST: Fourth Power Jordan $81 . 12 mi 1 l i on • BANK FINANCING: $25 million, for 17 years, including 4 years of grace with. interest at 9.6% per annum. OTHER FINANCING: Government of Jordan, $470,000 Jordan Electricity Authority, $16.3 million Jordanian Electric Power Company, $8.52 million Kuwait Fund, $18 million Customer contributions, $7 million Equity capital raised by JEPCO, $5.83 mi 11 ion IMPLEMENTING AGENCY: JEA (Jordan Electricity Authority) P . 0 . Box 23 10 Amman, Jordan Telex: JEASAK JO 21259 JEPCO (Jordanian Electric Power Company) P.O.Box 618 Amman, Jordan Telex: 21507 JEPCO JO • The National Planning Council Hashemite Kingdom of Jordan P.O. Box 555 Amman, Jordan Attn: Dr. Odeh, President Telex 21319 NPC JO PROJECT DESCRIPTION: The project includes: (a) construction of about 160 kilo- meters (km) of 132-kV transmission lines; (b) construction and reinforcement of five existing transformer substations, with a total capacity of about 619 MVA; (c) extension of the urban distribution netwcrk, including power supply to three low-cost housing developments; (d)electrification of about 20 villages around Amman and 30 villages in the Central and Southern regions of Jordan; (e) pro- vision of consultant services for project engineering and construction; (f) review of the organization and management of the Jordanian Electric Power Company (JEPCO); (g) setting up a training program for the staff of JEPCO and Jordan Electricity A"thority (JEA); and (h) provision of consultant services to assist in energy sector development. PROCUREMENT: Procurement for works and goods to be financed by the Bank loan will be through international competitive bidding (ICB) under Bank guidelines. JEPCO will group its purchases into the following co~tracts: 33-kV overhead lines; 33-kV cables; 11-kV cables and auxiliaries; outdoor 33-~V switchgear; power transformers; equipment needed for upgrading the existing 6-kV distribution network to 11-kV; ·rural electrification; and the distribution network for low-cost housing. Materials and erection works for rural electrification (both JEA and JEPCO) will be contracted separately. A preference of 15% or actual import duty, whichever 1s less, will be granted to local manufacturers of equipment for • rural electrification and distribution networks. I •. .  -2- • CONSULTANTS: JEA will require about 135 man-months of consultant services in procurement, supervision of construction, erection, and inspection of project works and equipment. JEPCO will need about 100 man-months of consultant services in procurement, supervision of construction and inspection of distribution equipment. Another 25 man-months will be required for JEPCO's organization and management review. About 40 man-months of consultant assistance will be provided to Jordanian authorities in matters related to energy sector development, organization, and activities. ECONOMIC RATE OF RETURN: 21% ESTIMATED COMPLETION DATE: 1984 - 0 - • •