IFC Invests $40 Million in Jordan’s EDCO to Help Increase Availability of Electricity
In Washington:
Zibu Sibanda
Phone: 202-473-0605
Email: zsibanda@ifc.org
In Cairo:
Riham Mustafa
Phone: + 20 24619149 ext 306
E-mail: rmustafa@ifc.org
Amman, Jordan, May 7, 2009—IFC,
a member of the World Bank Group, is investing $40 million in Jordan’s
Electricity Distribution Company (EDCO) to help upgrade the company’s
distribution network and implement an investment plan to improve the availability
of electricity and quality of services for customers.
IFC’s investment comes at a critical time for the electricity sector in
Jordan. EDCO was recently privatized and needs to rapidly demonstrate the
benefits of those reforms to the public. The government of Jordan is already
realizing some of those benefits, channeling its scarce resources to other
priority sectors as a result of the privatization. The government expects
EDCO to demonstrate the viability of private provision of electricity distribution
services to the nation and the region.
“We appreciate IFC’s support in such a difficult financing environment,
as most banks are shying away from lending,” said Mohammed Friehat, EDCO’s
Managing Director. “IFC’s investment in EDCO is an endorsement of our
business model and the Jordanian economy.”
EDCO will use a portion of the IFC investment proceeds to consolidate its
assets in the electricity distribution sector, which would improve the
company’s efficiency.
“This landmark transaction will demonstrate the benefits of public-sector
reforms and private-sector participation in electricity distribution to
the region,” said Michael Essex, IFC Director for the Middle East and
North Africa Region. Anita George, IFC’s Infrastructure Director for Asia
and MENA, said IFC’s investment in EDCO will help “reduce distribution
losses, thus contributing to lower greenhouse emissions and mitigating
climate change.”
IFC also worked closely with EDCO to develop an Environmental and Social
Action Plan for the project. The plan is expected to help improve occupational
and public safety performance in accordance with international best practice
while addressing pollution management and performance.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $16.2
billion in fiscal 2008, a 34 percent increase over the previous year. For
more information, visit www.ifc.org.
About EDCO
EDCO serves the southern and western parts of Jordan. In 2008, EDCO was
acquired by the Kingdom Electricity Company, a consortium of investors
from Jordan and the Arabian Gulf countries. The lead investor in KEC is
Jordan Dubai Capital.
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