Amman, Jordan, November 7, 2018—IFC,
a member of the World Bank Group, is providing a $71 million financing
package to fund the construction of the new Daehan Wind Power Plant in
Jordan—IFC’s second major investment in the country’s wind sector this
The 51-megawatt plant will be built in the southern governorate of Tafila.
It will help provide clean energy to homes and businesses across Jordan.
During the last two decades, the World Bank Group has played a key role
in Jordan’s energy sector, aiding its unbundling and subsequent privatization
through regulatory and financial support. IFC has also facilitated the
country’s renewable energy program with financing and investment solutions.
So far, IFC has invested over $300 million in across 13 renewable projects,
enabling well over $1 billion in private sector investments in Jordan’s
This latest investment is part of IFC’s broader effort to help Jordan
boost its domestic energy supply through renewable power, following pioneering
investments in the Tafila wind farm and the Abour wind farm and others.
IFC is also leading industry efforts to reduce the risks that wind farms
pose to wildlife, including birds, through a “landscape approach” to
risk management. IFC engages different stakeholders, including multiple
private operators of wind projects in the area, to assess potential negative
impacts on biodiversity on a region-wide basis and agree on coordinated
measures to mitigate them.
The $103 million Daehan project is being developed by two Korean sponsors,
KOSPO and Daelim Energy. IFC is providing a $10 million loan for its own
account and also acted as lead arranger, mobilizing parallel loans of $26
million from Managed Co-Lending Portfolio Program (MCPP), $27.7 million
from the Standard Chartered Bank, and $8 million from Korea’s Shinhan
Bank. IFC also structured an equity bridge loan of $26 million, its first
in project financing, and will provide interest rate swaps for half the
“IFC’s ability to innovate and its vast experience in Jordan’s renewable
sector has helped us enter this new market,” said Taehee Cho, General
Manager of Daehan Wind Power Company, set up by KOSPO and Daelim Energy.
“This project will help scale up further renewable energy generation and
contribute to Jordan’s objective of diversifying its domestic energy supply,
while bringing down overall costs.”
Daehan Wind is the first engagement in Jordan’s renewable sector by KOSPO,
Daelim Energy, and Shinhan Bank.
“We are helping to bring vital foreign direct investment into Jordan from
new sources and mobilizing capital on a long-term basis,” said Mouayed
Makhlouf, IFC Director for the Middle East and North Africa. “IFC’s countercyclical
investment approach is helping to enhance the competitiveness of Jordan’s
renewable sector and setting a model for similar investments in the region.”
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In fiscal year 2018, we delivered more
than $23 billion in long-term financing for developing countries, leveraging
the power of the private sector to end extreme poverty and boost shared
prosperity. For more information, visit www.ifc.org