Hashemite Kingdom of Jordan / Loan Insurance for Al Manakher Photovoltaic Project
-The 1st co-financing project based on the MOU with OPIC-

January 22, 2018

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI: President and CEO: Kazuhiko Bando) has decided to provide loan insurance for Photovoltaic Project in Al Manakher, located east of Amman, the capital of the Hashemite Kingdom Of Jordan.

Under this project, Mitsui & Co., Ltd. (Mitsui), AES Corporation (AES, one of the largest power companies in the United States) and Qatar-based Nebras Power Q.P.S.C. (Nebras Power) will build a 52 MW photovoltaic power station through a jointly established project company AM Solar B.V./Jordan 1, to sell the generated electricity based on a 20-year power purchase agreement with National Electric Power Company.

Expecting a significant increase in electricity demand in the near future, the government of Jordan has announced that the Kingdom will increase the share of renewable energy in the total energy mix to 20% by 2025 to secure a stable energy supply. This project is expected to contribute not only to a stable balance between power supply and demand, but also to the Kingdom’s economic and social development through clean power supply that will help reduce greenhouse gas emissions.

The total project cost to be borne by AM Solar B.V./Jordan is USD 54 million. The U.S. Government’s development finance institution, the Overseas Private Investment Corporation (OPIC), and Sumitomo Mitsui Banking Corporation (SMBC) have agreed to provide loans for the project, and NEXI’s insurance will support the USD 20 million loans provided by SMBC.

On November 7 last year, NEXI signed the Memorandum of Understanding on Cooperation (MOU) with OPIC to develop a framework for cooperation in fields of investment and finance to effectively support Japanese and U.S. companies which aim to implement projects in emerging markets. 2 The Al Manakher Photovoltaic Project is the first co-financing project based on the MOU with OPIC.

As a financial institution implementing Japan’s policy, NEXI will continue to support, through Japanese companies’ overseas business, the development of infrastructure that will lead to GHG emission reduction.

Insured Sumitomo Mitsui Banking Corporation
Insurable Value USD 20 million
Tenor Approximately 20 years
Covered Risks Political Risk 100% and Commercial Risk 90%

Contact: Power Group, Structured and Trade Finance Insurance Department
     Tel: 03-3512-7670

1 The project company AM Solar B.V./Jordan is owned by Mitsui (40%), AES (36%) and Nebras Power (24%).

2 For the details of the MOU, please see TOPICS (News Release), Nov. 8, 2017.