ACWA Sunrise Al Mafraq Solar PV

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

A senior secured loan of up to USD 26 million to finance the construction of a 50 MW solar photovoltaic plant located within the King Hussein Bin Talal Development Area near the city of Al Mafraq in Mafraq Governorate, 80 km north of Amman in Jordan. The Project will be one of the first utility-scale solar plants of this size in Jordan and will support the country in increasing its renewable energy capacity and reducing its reliance on costly hydrocarbon imports.

Project ID 48322

Status Repaying

Location

Jordan

Business Sector

Energy

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Alexandre Allegue
aallegue@acwapower.com
+971 (0)4 509 1061
+971 (0)4 385 9625
http://acwapower.com/
ACWA Power Nassima Tower, Sheikh Zayed Road P. O. Box 30582 Dubai, UAE

Project ID 48322

Status Repaying

Location

Jordan

Business Sector

Energy

Notice Type

Private

Environmental Category

Approval Date

20 Jul 2016

Disclosure date

17 May 2016

ACWA Sunrise Al Mafraq Solar PV (Arabic) (PDF, 0.24MB)

Project description

Project objectives

Project rationale stems from Jordan's strategy to procure cost-effective, indigenous energy supplies to mitigate its energy crisis. As part of the government's second round of direct proposals for solar ("Round 2"), the Project represents an important part of its ambitious programme to generate 10% of Jordan's electricity demand from renewables by 2020.

Transition impact

ETI Score:80

ject will assist Jordan in diversifying its power sector which is heavily focused on thermal power generation. It will increase the generation of energy through indigenous renewable sources and will be developed to comply with EBRD's E&S Policy 2014, which requires Projects to meet EU environmental standards.

The Project marks the transition from a feed-in tariff model (Round 1 of government-run direct proposals process) to a tender process in which the tariff is set competitively (Round 2). Consequently, the Project will be one of the cheapest sources of electricity of any kind in Jordan and the wider region. The successful implementation of Round 2 will demonstrate the benefits of using a competitive process and will establish this as the model for future rounds.

Client information

AL SHARIKA AL MAHALIYA LI AAMAL AL MIYAH WA AL TAKA AL SHAMISA PSC

The Borrower will be a special purpose vehicle to be incorporated in Jordan for the sole purpose of developing, constructing and operating the Project. The Borrower will be ultimately owned by International Company for Water and Power Projects (ACWA Power), one of the Middle East leading power and water players with more than 7.6 GW of operational power assets owned, 9.2 GW under construction, and 5.9 GW in advanced development.

EBRD Finance Summary

USD 26,999,546.00

Up to USD 26.1 million senior secured loan, alongside parallel or syndicated facilities of the same amount.

Total project cost

USD 71,999,092.00

USD 70 million.

Environmental & Social Summary

Category B. The 50MW solar PV plant is located in the KHBTDA industrial zone, adjacent to several houses to the north. The closest conservation site, an Important Birds Area, is in 7 km to the south of the site. The archaeological authorities confirmed that the plant does not impact any designated cultural heritage monuments areas. The Project has been subject to a Jordanian Environmental and Social Impact Assessment (ESIA) that is currently going through the permit approval process issue by the Competent Authorities.

The Project was categorised B (ESP 2014) following an Initial Environmental and Social Examination in April 2016 by the Bank's environmental expert, and the scope of the Environmental and Social Due Diligence (ESDD) was determined accordingly. An independent consultant is contracted to carry out the ESDD of the Project under the terms of reference prepared by the Bank. The ESDD focused on reviewing Client's E&S institutional capacity and management systems to ensure Project's compliance with EBRD Performance Requirements ("PR"), analysis of specific environmental issues such as dust emissions, water use and wastewater management, raw materials sustainability and supply chain issues, waste handling of broken or old panels, and review of specific social issues, including plant's visual impacts, land acquisition and compensations for loss of grazing land, local employment opportunities, construction workers influx management, cultural heritage, and occupational and community safety among others.

ESDD assessed the social investment needs of the local community and required stakeholder engagement, and based on this is recommending to implement a specific Corporate Social Responsibility ("CSR") programme and Stakeholder Engagement Plan ("SEP"). A Non-Technical Summary ("NTS") was prepared for the Project and posted on Company's website (insert link here), as well as being made available as hard copies locally to facilitate information disclosure in the neighbouring community.

To ensure compliance with the Bank's PRs and to address the gaps identified at the ESDD the ESAP has been developed and agreed with the Client. The Bank will monitor the implementation of the Project via annual Environmental and Social reports review and monitoring site visits when required.

Technical Cooperation and Grant Financing

None.

Company Contact Information

Alexandre Allegue
aallegue@acwapower.com
+971 (0)4 509 1061
+971 (0)4 385 9625
http://acwapower.com/
ACWA Power Nassima Tower, Sheikh Zayed Road P. O. Box 30582 Dubai, UAE

Implementation summary

Project rationale stems from Jordan's strategy to procure cost-effective, indigenous energy supplies to mitigate its energy crisis. As part of the government's second round of direct proposals for solar ("Round 2"), the Project contributed towards achieving its target to generate 10% of Jordan's electricity demand from renewables by 2020.

The Project assisted Jordan in diversifying its power sector, which is heavily focused on the thermal power generation. It introduced an additional 50MW of renewable solar energy generation in Jordan, thus supporting Jordan in increasing its electricity generation capacity from renewable sources and reducing reliance on the hydrocarbon imports. The Project was developed to comply with EBRD's E&S Policy 2014, which requires Projects to meet EU environmental standards.

The Project marked the transition from a feed-in tariff model (Round 1 of the government-run direct proposals process) to a tender process in which the tariff is set competitively (Round 2). Consequently, the Project was one of the cheapest sources of electricity in Jordan and the wider region. The successful implementation of Round 2 demonstrates the benefits of using a competitive process and established this as the model for future rounds.

The Project realised its transition impact objectives, which include (i) demonstration of new replicable behaviour through development of renewable energy capacity using the competitive tender model, (ii) increasing private ownership in renewable energy projects, and (ii) setting standards for corporate governance through successful implementation of Environmental and Social Action Plan (ESAP) and realising CO2 emission reduction of approximately 80,000 tCO2 annually.

PSD last updated

13 Nov 2023

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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ACWA Sunrise Al Mafraq Solar PV

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

Implementation summary

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)