Con­struc­tion of YTL Power’s Jordan ven­ture to start soon

New Straits Times - - Business -

KUALA LUMPUR: The US$2.1 bil­lion (RM9.3 bil­lion) oil shale-fired power ven­ture in Jordan has reached a fi­nan­cial close as YTL Power In­ter­na­tional Bhd com­pletes the trans­fer of an­other 15 per cent stake in it.

This in­creases YTL Power’s stake in the con­sor­tium, At­tarat Power Com­pany (Apco), to 45 per cent, putting it equal with an­other stake­holder — China’s Yudean Group.

The re­main­ing 10 per cent stake in Apco is held by Es­to­nia’s Eesti En­er­gia AS.

Apco yesterday an­nounced that it had reached fi­nan­cial close to the ven­ture, the first oil shale power project in the king­dom.

Fi­nan­cial close oc­curs when all project and fi­nanc­ing agree­ments have been signed and the con­di­tions met.

It en­ables funds such as loans, equity and grants to start flow­ing so that the project can ac­tu­ally start.

Apco said in a state­ment the con­struc­tion of the 554megawatt power plant would kick off soon, with com­mer­cial oper- ations ex­pected to be­gin in mid2020.

“Fi­nan­cial close en­tails no­tice to pro­ceed with the con­struc­tion,” said Apco chief ex­ec­u­tive of­fi­cer-des­ig­nate Ja­son Pok Hooi Loong.

YTL Power manag­ing di­rec­tor Tan Sri Fran­cis Yeoh Sock Ping said the com­pany first brought its in­ter­na­tional in­de­pen­dent power pro­ducer ex­per­tise to the project in 2011.

“We be­lieve this is a unique project that will have a pos­i­tive im­pact on the Jor­da­nian econ­omy as well as yield solid re­turns,” he said in a state­ment.

Ap c o said the project was the first to com­mer­cially utilise Jordan’s abun­dant oil shale re­serves and would sig­nif­i­cantly re­duce Jordan’s re­liance on im­ported oil and gas.

“It is ex­pected to meet 10 to 15 per cent of Jordan’s an­nual power de­mand,” Apco said.

YTL Power and the other two share­hold­ers will pro­vide base fund­ing of up to US$528 mil­lion.

The re­main­ing US$1.58 bil­lion will be pro­vided by China Ex­port & Credit In­sur­ance Corp.

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