Announcement of World Bank Loan to Support Development of Jordan's Power Sector on June 18, 1987

FOR IMMEDIATE RELEASE 4 .World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. BANK NEWS RELEASE NO. 87/84 Contact: Fawzi Rihane (202) 477-5325 WORLD BANK LOAN TO SUPPORT DEVELOPMENT OF JORDAN'S POWER SECTOR WASHINGTON, June lft;_ -- Jordan is launching a project to meet its future power needs with the assistance of a $70 million loan from the World Bank. The $257.8 million project involves the expansion of an existing steam power plant at Aqaba by adding two 130-megawatt units initially firing heavy fuel oil, with provision for future coal firing. Substations at Aqaba and Amman-South will be upgraded to 400 kilovolts. The project will also help improve the quality of power supply services and continue institution-building efforts of the Jordan Electricity Authority (JEA), making it a technically efficient entity. Consultants will assist JEA staff who will be trained in the safe and efficient operation of facilities. The project is part of JEA's priority investment program for the development of the country's power subsector between 1988 and 1995. Additional financing will be provided by the Arab Fund ($24 million), Kuwait Fund ($24 million), Islamic Development Bank ($14 million), and OPEC Fund ($5 million). JEA will provide $72.3 million, and $48.5 million are expected from export and suppliers' credit. The World Bank loan is for 17 years, including four years of grace, with a variable standard interest rate, currently 7.92 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on the undisbursed balances. Note: Money figures are in U.S. dollar equivalents.