On June 17, 2015, MIGA issued a guarantee of $6.1 million covering an equity investment by Adenium Solar Jordan of the Cayman Islands in Jordan Solar One (Cayman)/Jordan. MIGA’s coverage is for a period of up to 20 years against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract.
The project involves the development, construction, operation, and maintenance of a single 20-megawatt photovoltaic power project located in Mafraq. All output generated by the projects will connect to the Al Hassan substation in Husha, Mafraq and will be sold to Jordan’s National Electric Power Company under a 20-year power purchase agreement.
The project will reduce Jordan’s dependence on imported fuel and decrease the overall cost of power generation as well as decrease the growth of greenhouse gas emissions. It will also help reduce the current account deficit by reducing the need for costly imported fuels.
The project is aligned with Jordan’s Country Partnership Strategy for 2012-15, which emphasizes leveraging private capital for investment in key infrastructure and seeks to reduce reliance on imported energy by changing the energy mix though the gradual development of renewable energy resources. It is also aligned with the government’s Renewable Energy Program, which aims to increase renewable energy contribution to 10 percent of the country’s generation mix by 2020.
MIGA’s support for the project is also consistent with the agency’s priority of supporting energy efficiency and climate change projects, as outlined in its strategy for fiscal years 2015-2017.