Expected International Funding for a New 700 MW Power Plant in Mafraq
Mafraq3 min read
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The International Finance Corporation (IFC) is considering providing funding of up to $200 million for a new project to establish a gas-fired power plant in Mafraq Governorate, with a capacity of up to 700 megawatts, in a project aimed at increasing generation capacity and enhancing the reliability of the electrical system and energy security in Jordan.
According to project data, the institution is considering providing funding for the project, which is estimated to cost around $900 million, alongside mobilizing additional long-term financing.
The project is still awaiting approval, while the International Finance Corporation has set November 17, 2026, as an expected date for presenting it to its board.
According to the project's environmental and social review documents, the International Finance Corporation expects the construction of the plant to begin by the end of this year, with construction works expected to continue for about two years.
The plant's main facilities include 3 gas turbines, 3 heat recovery steam generators, and a steam turbine, along with supporting systems and facilities.
The project is connected to the national grid through a 400 kV transmission line approximately 7 kilometers long and a transformer station, in addition to a natural gas line approximately 300 meters long to connect the plant to the existing gas network, and a water supply line approximately 4.5 kilometers long.
- A plant with a capacity of 700 megawatts
The project includes the development, construction, operation, and maintenance of a new power plant using combined cycle gas turbine (CCGT) technology, with a capacity of 700 megawatts in Mafraq Governorate.
The plant will generate electricity under a 25-year power purchase agreement signed with the National Electric Company.
The project is located in the Khanasiri area in the Mafraq District, about 80 kilometers north of Amman and about 50 kilometers southwest of the center of Irbid city.
According to the International Finance Corporation, the most significant expected developmental impact of the project is the increase in Jordan's electricity generation capacity, along with enhancing the reliability of the electrical system and reserve margins.
Last April, the Council of Ministers approved the Ministry of Energy and Mineral Resources to proceed with the necessary procedures to implement the combined cycle power plant project "Private Power Project 7 (IPP7)" with Etihad Development Company, fully owned by Etihad Water and Electricity Company, and approved the project agreements in preparation for signing them.
The government said at the time that the project is part of the National Electric Company's expansion plan to address the expected increase in future loads, by building a 700 MW generation plant using modern energy technologies.
The project is expected to contribute to improving energy security by providing additional controllable generation capacities, as well as supporting the introduction of a larger share of variable renewable energy sources into Jordan's electricity mix.
The International Finance Corporation intends to support the project company in implementing environmental and social standards in line with the institution's performance standards.
The project is scheduled to be implemented by a special purpose company, "Khanasiri Energy Private Limited Company", while Etihad Development, the infrastructure development platform of Etihad Water and Electricity Company (EtihadWE), supported by the Emirates Investment Authority (EIA), the federal sovereign wealth fund of the United Arab Emirates, is responsible for its development.
The International Finance Corporation classified the project as an environmental and social category "A", in light of the significant and irreversible potential impacts associated with land use change, in addition to the scale and complexity of the construction works.
