TAFILA WIND FARM

The project comprises the construction and operation of a greenfield wind farm Independent Power Producer (IPP) to produce 117 MW electricity in Jordan. The wind farm will be located in the Tafila Governorate of Jordan, in an area east of the town of Ghurandil and north of the Lafarge Rashidiya cement plant. The electricity generated will be sold to the National Electricity Power Company (NEPCO).

The project will contribute to Jordan's development objective in the energy sector aiming to increase both electricity production and the share of renewable energy in its electricity generation portfolio. It will contribute to climate change mitigation, thereby displacing fossil fuel-based generation and avoiding greenhouse gas emissions. The project also fulfils the government's objective of increasing the participation of the private sector in energy generation.

The project (including the wind farm connection to the grid) is undergoing an Environmental Impact Assessment (EIA) according to the local legislation which will also include public consultation. No resettlement of local population is envisaged. The project site is located less than 5 km away from the Dana Biosphere Reserve's Eastern border and overlaps with an Important Bird Area. Detailed biodiversity surveys to assess the potential impact on these protected areas and species should be concluded by the end of the year. Compliance with the principles of the EU EIA Directive and the EU Habitats and Birds Directive shall be verified during the appraisal.

The promoter has followed a public procurement process for a turn-key Design-Build-Operate-Maintain (DBOM) contract for the wind farm in line with the Bank's procurement guidelines. Contract award and signature is expected for end 2012.

This operation is covered by the EU Political Risk Guarantee for EIB loans outside the EU.