Jordan - Energy Development Project

Document of The World Bank H1JE {Y)P 1 FOR OFFICIAL USE ONLY Report No. 4626-JO STAFF APPRAISAL REPORT JORDAN ENERGY DEVELOPMENT PROJECT November 14, 1983 Projects Department Europe, Middle East and North Africa Regional Office 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 0.355 = US$1.00 JD 1.00 = US$2.81 JD 1.00 = 1,000 fils US$1.00 = 1,000 mills WEIGHTS AND MEASURES 1 meter (m) = 3.281 feet (ft) 1 kilometer = 0.621 mile 1 square kilometer (km2) = 0.386 square mile (mi2) 1 cubic meter (m3) = 35.315 cubic feet (ft3) 1 kilogram (kg) = 2.205 pounds (1B) 1 ton (1,000 kg) = 1.102 short ton (sh ton) 0.984 long ton (lg ton) 1 barrel (bbl; 0.159 m3) = 42 US gallons (gal) 1 kilowatt (kW) = 1,000 Watts 1 Megawatt (MW) = 1,000 kW 1 kilowatt hour (kWh) = 1,000 Watthours (Wh) 1 Gigawatt hour (GWh) = 1,000,000 kWh = 1,000 MWh (=106kWh) 1 kilovolt (KV) = 1,000 volts (V) 1 kilovolt ampere (kVA) = 1,000 volt amperes (1 kVA) 1 Megavolt ampere (MVA) = 1,000 kVA 1 quad = 1015Btu GLOSSARY OF ABBREVIATIONS CGG - Compagnie Generale de G6ophysiquet cM - Council of Ministers EPA - Energy Plan of Action EPU - Energy Planning Unit ESS - Energy Sector Study IDECO - Irbid District Electricity Company IAEA - International Atomic Energy Agency JEA - Jordan Electricity Authority JEPCO - Jordanian Electric Power Company JPRC - Jordanian Petroleum Refinery Company GCEC - Gilbert Commonwealth Engineers and Consultants K&D - Kennedy and Donkin LPG - Liquified Petroleum Gas LRMC - Long Run Marginal Cost MIT - Ministry of Industry and Trade NEC - National Energy Committee NPC - National Planning Council NRA - Natural Resources Authority PD - Petroleum Department at NRA PCR - Preece, Cardew and Rider RSS - Royal Scientific Society SCE - Steering Committee for Energy toe - tons of oil equivalent Tapline - Trans-Arabian pipeline Financial Year = Calendar Year (1085P)  FOR OFFICIAL USE ONLY JORDAN ENERGY DEVELOPMENT PROJECT Table of Contents Page No. I. THE ENERGY SECTOR ......................................1 A. Introduction ....................................... 1 B. Energy Resources ................................... 1 C. Institutional Setting of the Sector .... ............ 2 D. Energy Balances .................................... 4 E. Energy Pricing. ........... 6 Petroleum Products . . ............ 6 Electricity Pricing .............................. 8 F. Energy Planning and Development Strategy .... ....... 10 Energy Planning .................................. 10 Energy Development Strategy ...................... 12 G. Beneficiaries . 14 The Jordanian Electric Power Company (JEPCO) 14 The Irbid District Electricity Company Limited (IDECO) ........................................ 15 Royal Scientific Society (RSS) ................... 16 National Planning Council (NPC) .... .............. 17 H. Role of IDA/Bank ................................... 18 II. THE PROJECT ............................................ 19 Project Objectives .................... ................. 19 Project Description .................................... 19 A. Petroleum Exploration Component .... .............. 19 B. Power Distribution Component ..................... 19 C. Energy Conservation Component .................... 20 D. Renewable Energy Component ....................... 20 E. Energy Planning Component ........................ 21 The report was prepared by Messrs. I. Elwan (Economist), Ms. Z. Ladhibi (Engineer), C.P. Ranganathan (Financial Analyst), J. Schweighauser (Geologist), A. Malik (Renewable Energy Specialist), A. Smit (Petroleum Specialist), S. El Daher (Financial Analyst) and J. Mulckhuyse (Conservation Specialist) 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 - Table of Contents (Continued) Page No. II. THE PROJECT (Cont'd) Project Cost .......... ................................. 21 Project Financing ...................................... 21 Lending Arrangement .................................... 24 Accounts and Audits .................................... 24 Engineering and Consulting Services .................... 24 Project Irnplementation ................................. 26 Procurement .......... .................................. 29 Disbursements ............................ 32 Risk ........... ........................................ 32 III. FINANCE ............................................... 33 Rural Electrification Losses ........................... 33 A. Jordanian Electric Power Company .... .............. 34 Accounting ..................................... 34 Accounts Receivable ...................