The Project sponsor is ACWA Power, a leading MENA-based developer, co-owner and operator of independent water desalination and power generation projects, with a portfolio of 16 GW of power generation and 2.5 million m3/day of water desalination capacity. ACWA Power was established in 2004 and is a private company that is headquartered in the Kingdom of Saudi Arabia.
The Project company is 100% owned by Red Sea Energy, which is in turn 85% owned by ACWA Power and 15% owned by IFC.

The total Project cost is estimated at US$475 million.

The proposed IFC investment is up to a US$75 million A loan for IFC’s own account and estimated up to US$110 million in syndicated B loans/parallel loans.

81.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management	6.0
Guarantee
Loan	75.0
Equity

* These investment figures are indicative

The Project site is located within Zarqa Governorate in the north of Jordan, approximately 4km north-east of the center of Zarqa city (the capital of Zarqa Governorate) and 40km north-east of the capital city of Amman. The Project will be situated in an existing, largely industrial/commercial area. Access to the site is good with a main road running north-south on the site’s western side.

(i) Increase Jordan''s power generation capacity to meet growing power demand.
(ii) The Project is expected to have a lower tariff than the most recent IPPs that were implemented in Jordan and will be benefiting end consumers.
(iii) Given that the Project is replacing the recently decommissioned, fuel-oil fired HTPS, environmental benefits are expected.
(iv) During the construction phase of the new plant, notable employment will be generated. The Project will also help to preserve employment from the existing HTPS.

(i) Provide long-term financing, which is not easily available from local financial institutions, to make the project financially viable.
(ii) Mobilize additional long-term financing from other financial institutions to support the Project and reach financial close.
(iii) Promote IFC''s E&S Performance Standards and ensure the Project operates with best practice E&S standards.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Organizational capacity and Management Programs(%)	Organizational capacity and Management Programs(%)		Not Available	Not Available	Not Available
Human Resources Policies and Procedures(%)	Human Resources Policies and Procedures(%)		Not Available	Not Available	Not Available
Occupational Health and Safety(%)	Occupational Health and Safety(%)		Not Available	Not Available	Not Available
GHG Emission Reduction Achieved - Onsite EE Measures	Output		Not Available	Not Available	Not Available

The project is to develop a new large scale natural gas fired combined cycle power plant, with an installed capacity up to about 485 MW (net). Due to the potential significant adverse E&S impacts and risks, this project is a category A project according to IFC’s Policy on Environmental and Social Sustainability.



Key E&S risks and issues include: NOx emission control and ambient air quality impacts, noise control measures, labor and working conditions management during construction phase, energy efficiency and greenhouse gas emissions.



The findings of the project appraisal indicate that PS5 (Land Acquisition and Involuntary Resettlement) does not apply because all land required for the project was leased to the project company from CECGO and no involuntary resettlement is associated with the project. PS6 (Biodiversity Conservation and Sustainable Management of Living Natural Resources) is not considered to be applicable to this proposed investment because the power plant site is located in the city of Zarqa Industrial Zone. PS7 (Indigenous Peoples) is not considered applicable because the project will not affect any indigenous peoples. PS8 (Cultural Heritage) is not considered applicable because the ESIA reports show that there are no items of cultural heritage affected by the project.



IFC’s appraisal considered environmental and social management plans for the project and gaps between these plans and IFC requirements. Where necessary, corrective measures intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and in the agreed Environmental and Social Action Plan (ESAP) disclosed in this review summary. Through implementation of these management plans and the ESAP the project is expected to be designed and operated in accordance with Performance Standards objectives.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.