Jordan secures $56.5m loan with EBRD for power transmission, renewable energy projects

AMMAN — The Ministry of Planning and International Cooperation on Thursday signed loan and guarantee agreements totalling $56.5 million with the European Bank for Reconstruction and Development (EBRD) to support the North Green Station and Power Transmission Lines Project.

The agreements were signed by Director General of the National Electric Power Company (NEPCO) Sofian Bataineh and Finance Minister Abdulhakim Shibli, with Ministry of Planning and International Cooperation Zeina Toukan, Minister of Energy and Mineral Resources Saleh Kharabsheh, and the EU delegation in Amman in attendance.

EBRD Regional Director for the Eastern Mediterranean Gretchen Biery signed the agreements on behalf of the bank, the Jordan News Agency, Petra, reported. 

The project will involve the construction of a new substation in northern Jordan to enhance the power grid's capacity for existing and future renewable energy projects. 

It also aims to strengthen the high-voltage network and improve the operational flexibility of generation units in the region.

The project will also include the installation of four overhead transmission lines that will connect to existing substations in Samra, West Amman, El Hassan Industrial Estate and Jerash.

A second agreement includes an additional 12.4 million euro investment grant and a 2.2 million euro technical assistance grant to support the project's implementation and provide professional training within the electricity sector.

The new station will improve energy security by leveraging local green energy sources, enhancing power flow within the national grid, and facilitating network connections with neighbouring countries.

"We are proud to support NEPCO, in cooperation with the European Union, in developing electricity transmission infrastructure and strengthening Jordan's energy sector. The project will contribute to regional interconnection and support the kingdom's green transition in alignment with its Economic Modernisation Vision," Biery said.

Since 2012, EBRD’s cumulative investment portfolio in Jordan has reached around 2.3 billion euros, with 55 per cent allocated to private sector financing in sectors such as renewable energy, pharmaceuticals, water, municipal infrastructure, solid waste, transport, tourism and local banking.

Ministers praised EBRD's ongoing support for this vital project, which aligns with Jordan’s Economic Modernisation Vision and supports the country’s ambitious renewable energy targets for 2030.