Nabarro has advised the developer on the first large scale on-shore wind farm project to close in Jordan, with project financing secured from major international lenders and investors. This is the first project in Jordan's renewable energy programme to close and one of a number on which Nabarro is acting.
The Tafila wind farm is being developed by the Jordan Wind Project Company PSC, which comprises EP Global Energy (EPGE), the Euro-Mediterranean fund InfraMed and Masdar of Abu Dhabi.
This is the latest in a series of major wind farm-related matters for the Nabarro team which is advising EPGE on all aspects of one of the most significant renewables projects in the Arab Mediterranean. The cross-disciplinary team from Nabarro is led by Energy partner, Tom Bainbridge, Infrastructure and Finance partner Louisa Cilenti leading on the project financing, Corporate partner Kristy Duane on equity and Construction partner James Duckworth on design, build and operation matters. The team includes strong support from associates Sandy Abrahams, Camilla Bolton, Chinyelu Oranefo and Luke Temple.
The $221m debt funding represents approximately 77 per cent of the estimated total cost of the project and has been finalised in a collaboration agreement between the International Finance Corporation (IFC), part of the World Bank group, and the European Investment Bank (EIB) together with a consortium of lenders comprising Eksport Kredit Fonden (EKF), the OPEC Fund for International Development (OFID), FMO and Europe Arab Bank (EAB).
On 18th November 2013, a 20 year power offtake agreement was signed with Jordanian national electricity company, NEPCO, and, on 20th November, a novel design, build, operate and maintain contract was signed with Vestas for the installation of 38 V112 3MW turbines.
Construction will begin in 2014 and is expected to continue for approximately 18 months. The wind farm will increase Jordan's total power capacity by 3% at a time when demand is growing exponentially. It will also support the implementation of the Kingdom's renewable energy programme as well as creating jobs. Jordan has a target to have renewables generating 10% of its electricity requirement by 2020 which will significantly increase its energy security.
Samer Judeh, chairman of JWPC, said the new project is "major step toward getting Jordan on the renewable energy map of the world" that will serve to highlight the region's potential to other clean energy developers.
"Our country has suffered from a lack of domestic conventional energy sources and from serious challenges in security of energy imports," he added. "Jordan, however, has abundant renewable resources, and this will be the first and a showcase for many such projects to come."
Commenting on the project, Nabarro partner Tom Bainbridge said:
"This is one of the most exciting renewables projects in the Middle East and a first for Jordan which will benefit enormously by increasing energy security, sustainability and jobs. Over the last five years Nabarro has established itself as a firm with great credentials in supporting the very largest wind farm developments. Our work on Tafila again demonstrates the breadth of our skills by providing support for every aspect of the project from power offtake and guarantees, to construction and operation through to project finance and equity investment."
Other recent wind farm projects that Nabarro has acted on include: advising Thanet Offshore Wind Limited on its development of the Thanet Offshore Wind Farm; advising Greater Gabbard Offshore Wind Ltd, a joint venture between SSE Renewables and RWE Innogy in relation to disputes with EPC Contractor, Fluor Limited.
