The Washington-based International Finance Corporation (IFC) has disclosed it intends to finance Independent Power Project 5 (IPP5) in Jordan.

Saudi Arabia’s Acwa Power signed a 25-year power purchase agreement to develop the 485MW scheme in late 2015.

The project, located in Zarqa Industrial Zone, is expected to cost $475m.

It will have a 75:25 debt-to-equity ratio. The IFC will lend $75m directly and mobilise a further $200m.

Acwa is also in discussions with the local Kingdom Electricity Company (KEC) to invest in a 33 per cent equity stake in the project company. KEC holds stakes in Jordanian transmission and distribution companies and solar plants.

The combined-cycle gas power plant will use turbines from the US’ GE. China’s Shandong Electric Power Construction Corporation III (Sepco III) will be the engineering, procurement and construction (EPC) contractor. Operations and maintenance (O&M) will be undertaken by Central Electricity Generating Company (CEGCO) of Jordan, in which Acwa owns a stake.

The scheme is due for commissioning in May 2018.

The IFC is also planning to finance solar IPPs in Jordan, along with the European Bank for Reconstruction and Development (EBRD).