Project Financing
South Korea’s state-run Export-Import Bank of Korea (Korea Eximbank) announced on November 22 that it will provide project financing worth US$120 million (141.18 billion won) for an order to build a wind power plant in Fujeij, Jordan, that Korea Electric Power Co. (KEPCO) won from Jordan’s National Electric Power Co.
The Fujeij project is the first energy project in a developing country that a Korean company will carry out with investments from private lenders. The Korean utility firm will set up an 89.1 megawatt wind power plant that has 27 wind turbines with a capacity of 3.3 megawatt (MW), each, in Fujeij, 150 kilometers south from Amman, Jordan.
Korea Eximbank will own and operate the plant for 20 years. The construction of the wind farm is scheduled to be completed in October 2018. The state-run bank would be paid back the principal every six month on an 18-year installment plan after the completion of the construction.
An official from Korea Eximbank said, “This is one of the best examples that the bank offered a long-term loan after having close consultations over the project delivery and development stage with a business operator for six years. It is meaningful in that the project would lay the foundation for Korean companies to win more deals in overseas renewable energy businesses.”