Signing A Loan Agreement in The Hashemite Kingdom of Jordan
Tuesday, 03 July 2012
A Loan Agreement was signed in Amman in the presence of His Excellency Dr. Hamad Al-Du'aij, Ambassador of the State of Kuwait in the Hashemite Kingdom of Jordan, between Kuwait Fund for Arab Economic Development and Al Samra Power Generation Company, whereby the Kuwait Fund makes a Loan to the Company in the amount of 15 million Kuwaiti Dinars, equivalent to about 51 million US$ to assist in financing the Third Expansion Project of Al Samra Power Generation Station – Addition of the Steam Unit.
A related Guarantee Agreement was also signed today between the Hashemite Kingdom of Jordan and Kuwait Fund.
The Guarantee Agreement was signed on behalf of the Hashemite Kingdom of Jordan by His Excellency Mr. Suleiman Al-Hafez, Minister of Finance.The Loan Agreement was signed on behalf of the Company by Eng. Amjad Al-Rawashdeh, Director-General.Both the Loan and the Guarantee Agreements were signed on behalf of the Kuwait Fund for Arab Economic Development by Mr. Abdulwahab Ahmed Al-Bader, Director-General of the Fund.
The project aims to assist in meeting the rapid increase in demand for electric energy in Jordan through making the necessary electric power available to the economic activity in the country.
The project includes the procurement and installation of a steam unit with about 140 MW capacity working on heat recovery from the two simple cycle gas turbines of the first stage of the third expansion of Al-Samra Power Generation station, the main transformer 15/132 kv with a capacity of about 200 MVA to evacuate the power developed on the national grid and all mechanical and electrical auxiliaries as well as all civil works necessary to the project.It also includes the spare parts needed for 5 years of operation, as well as the consulting services and supervision of construction.
The total project cost is estimated at about JD 184 million, equivalent to about KD 76 million, of which the equivalent of about JD 147.25 million would be in foreign exchange.The loan provided by Kuwait Fund in the amount of KD 15 million would cover about 19.7% of total project cost, with the additional financing to be provided by the Saudi Fund for Development and the Arab Fund for Economic and Social Development.The Government of the Hashemite Kingdom of Jordan would cover the remaining estimated cost and any other cost increases.
The Loan maturity is 24 years, including a grace period of 4 years.It would be repaid over 40 semi-annual installments, with interest at the annual rate of 2%, in addition to a loan administration charge at the rate of 0.5% annually.
By signing this Loan Agreement it would be the 26th Loan provided by the Kuwait Fund to the Hashemite Kingdom of Jordan, as the Kuwait Fund has previously provided to Jordan 25 loans in the total amount of about KD 157 million (equivalent to about US$ 534 million) to assist in financing projects in various sectors.The Kuwait Fund provided 2 Technical Assistance to Jordan in a total amount of about KD 840 thousand to assist in the preparation of the feasibility studies of various projects, in addition to 2 Grants in the amount of KD 1.7 million to finance the construction and equipping of the Scientific Academy.