Announcement of Jordan to Use World Bank Loan and Co-Financing for Power Project on May 28, 1982

FOR IMMEDIATE RElEASE 7 "•World Bank 181.8 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 82/ 10(/ Contact: Ciro Gamarra r May 28, 1982 (202) 477-8034 JORDAN TO USE WORLD BANK LOAN AND CO-FINANCING FOR POWER PROJECT The World Bank will make a $35 million loan available for a power project in Aqaba, Jordan. The bilateral aid agencies of three Arab countries and three multilateral development finance institutions funded exclusively or largely by Arab nations are expected to support the $324.3 million power project. In addition, co-financing of up to $92 million is expected from commercial sources. The Arab countries expected to provide co-financing are: Kuwait, Saudi Arabia, and Iraq. The multilateral development finance institutions are: Arab Fund for Economic and Social Development, Islamic Development Bank, and OPEC Fund. The power project, the fifth to receive support from th. World Bank, is a part of the 1982-86 power system development program to he carried out by the jordan Electricity Authority. The project will help meet growing power demand, improve the quality of power supply, and accelerate the country's regional electrification. Included in the project are the construction of a seawater-cooled steam power station at Aqaba comprising two 130-megawatt oil-fueled generating units, the installation of a 320-kilometer-long transmission line from Aqaba to Amman, and the provision of consultant services for engJ;neering, construction, supervision, and initial operation. The first two power projects for increasing power generation received credits amounting to $15.2 million from the International Development Association (IDA), the World Bank's affiliate for concessionary lending. The projects have been completed satisfactorily~ Co-financing was provided for the first power project by the Kuwait Fund and for the second by the Arab Fund. The third power project, now underway with the support of a $15 million World Bank loan, aims at the expansiof'.l- pf the transmission network and the electrification of about 40 villages in Ct..,itral Jordan. The fourth project, for improving transmission and distribution facilities in both urban and rural areas, is being carried out, with a loan from the Kuwait Fund and a $25 million loan from the World Bank • •• The World Bank loan is for 17 years, including four years of grace, with interest at 11.6% ~ year. NOTE: Money figures are expressed in U.S. dollar equivalents.