- APCO announces financial close for USD 2.1 billion (over RM 9.3 billion) oil shale power project in Jordan
- Completion of 15 per cent equity transfer to YTL Power International Berhad
- Project to commence in mid-2020
Kuala Lumpur, March 16, 2017: Attarat Power Company (APCO) announced earlier today that it has reached financial close for the project to construct the first oil shale fired power station and open cast mine in Jordan.
The financial close triggered the completion of 15 per cent (%) equity transfer in APCO to YTL Power International Berhad (YTL), thus increasing YTL stake to 45% from existing shareholders, Eesti Energia AS (Enefit) of Estonia and Jordanian Near East Investment.
At the same time, China’s Guangdong Yudean Group Co. Limited completed its acquisition of 45% stake in APCO also from Enefit and Near East, making APCO owned 45% by each of YTL and Yudean and 10% by Enefit.
The shareholders have committed to provide base shareholder funding of up to USD 528 million.
“Financial Close is a landmark that is a result of the hard work and commitment of all parties involved. “
“We are pleased to have the opportunity to increase our initial participation in the project from 30% to 45% and step into a leading role in the development and completion of this exciting project,” said YTL managing director Tan Sri Francis Yeoh today.
He added that the oil shale power project is unique and will have a positive impact on the Jordanian economy as well as yield solid returns.
APCO designate chief executive officer (CEO), Jason Pok Hooi Loong said that their company and Guangdong Power Engineering Corporation (GPEC) will continue to work closely with Jordanian Government and National Electric Power Corporation (NEPCO) to complete the project.
“Financial Close entails notice to proceed for the construction. APCO is honoured to be entrusted with the realisation of this most strategic investment.”
“We’ll work together to complete this largest ever private sector project in Jordan in 2020, in order to generate despatchable, reliable power using local resources,” he added.
The project will be located at the Attarat um Ghudran oil shale deposit approximately 100km south east of Amman.
The construction of the 554MW gross/470MW net oil shale fired mine mouth power station will commence shortly and the power station is scheduled to start operation in mid-2020.
This project is the first to commercially utilise Jordan’s abundant oil shale reserves, and will significantly reduce Jordan’s reliance on imported oil and gas.
It is also reported that with an investment value of USD 2.1 billion, the project is the largest private sector project in Jordan to date.
The two unit power station will be the first oil shale fired power station and mine project in the world funded by limited recourse project financing. It is expected to meet 10-15% of Jordan´s annual power demand.
