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Saturday, 27.04.2024, 00:57
Eesti Energia to invest EUR 52.5 mln in Jordan
"As a minority shareholder with 10 % of the shares in
the 2.1 bln dollar power generating project we will invest 52.5 mln dollars
over the years 2017-2020," Kaarel
Kuusk, chief of media relations at Eesti Energia.
"The sources for this investment are the premium of
19.8 mln dollars received from the sale of the stake, recovery of all of the
development costs in the amount of 30.6 mln dollars incurred during eight
years, and the income generated by the project," Kuusk said, adding that Eesti Energia will put no "new
money" in the project during the construction period.
"In addition we will earn owner's income from the project, which is secured by a 30-year agreement on the sale of electricity at a fixed price and a guarantee issued to it by the Jordanian government," he said.
Asked about the return on the investment, Kuusk said that Eesti Eneregia cannot provide any
figures, but described it as "good."
"In addition to 'good' I can say that it's a double
digit figure," the spokesman added.
APCO announced on Thursday that it has reached financial
close for the 2.1 bln U.S. dollar project to build the first oil shale fired
power station and open cast mine in Jordan. With the financial close, Eesti Energia has completed the sell-down
of its previous 65 % shareholding in APCO to 10%.
Eesti Energia said
on Thursday it will receive a combined amount of 50.4 mln U.S. dollars from the
sale of shares and as return of the project development costs.
APCO is now owned
45 % by YTL Power International Berhad,
45 % by Guangdong Yudean Group Co. Limited of China and 10 % by Eesti Energia.
The shareholders have committed to provide base shareholder
funding of up to 528 mln U.S. dollars to fund the project.
The remaining 1.58 bln dollars is provided by Bank of China and Industrial Commercial Bank of China. A guarantee to the loan was
provided by the Chinese export credit agency Sinosure and it represents the biggest ever guarantee issued by Sinosure.
The power plant with a gross output capacity of 554
megawatts and net output capacity of 470 megawatts will be built at Attarat um
Ghudran, Jordan by Guangdong Power
Engineering Corporation, subsidiary of
China Energy Engineering Group Co Ltd. The first of the plant's two power
generating units using the circulating fluidized bed technology is to be
completed in 38 months and the second in 42 months. The plant is expected to be
operational in mid-2020.
The plant's design will be provided by the Australian
company WorleyParsons, the boilers
supplied by the British company Foster
Wheeler and the turbine and generators by Siemens of Germany.
The energy produced by the plant will be bought by the
Jordanian state owned energy company National
Electric Power Corporation under a 30-year fixed term agreement. The
project represents the biggest ever individual investment in Jordan to date.