Chinese Consortium Provides $1.58 Billion to Finance Oil Shale project in Jordan
A consortium of several banks from China has provided
$1.58 billion and 15-year debt facility to support an oil
shale power plant in Jordan, which will be the largest
private sector project in the country.
The debt facility has been lead arranged by Industrial
and Commercial Bank of China, Bank of China, China
Construction Bank and Exim Bank of China, according to a
statement from the Attarat Power Company (APCO) for the
financial close of the project.
APCO said in the statement that work will start soon on
the 554 megawatts project, which will be located at the
Attarat um Ghudran oil shale deposit, about 100 km
southeast of the capital Amman.
The power station, with an investment valued $2.1
billion, is scheduled to start operation in mid-2020.
The project is the first to commercially utilize Jordan's
abundant oil shale reserves and will significantly reduce
the country's reliance on imported oil and gas.
The two-unit power station will be the first oil shale
fired power station and mine project in the world funded
by limited recourse project financing. It is expected to
meet 10-15 percent of Jordan's annual power demand.
"The project will promote the strategic partnership
between Jordan and China, and finally sets a model for
the similar projects in the future," Jordan's minister of
energy and mineral resources, Ibrahim Saif, said on the
financial close ceremony.
The power station and oil shale mine are expected to
employ approximately 5,500 people during construction and
1,000 during operations.