The 50W solar projects under Jordan’s second round feed-in tariff scheme have six months from signing a power purchase agreement (PPA) to reach a financial close.

One project, developed by China’s Hareon Swiss Solar, signed a PPA in December 2015, while the other three projects signed in early 2016.

Fujeij wind farm independent power project, first tendered in 2011, is in a similar position after a PPA was signed in December. Korea Electric Power Corporation (Kepco) will develop the $510m, 90MW project and Denmark’s Vestas will provide turbines.

Development banks are expected to dominate the project finance. Commercial banks have limited interest in financing the projects, although some local banks could participate.

The European Bank for Reconstruction and Development (EBRD) and International Finance Corporation (IFC) were considering financing 80 per cent of Hareon’s $75 million project, according to its press release. It is seeking an 18-year tenor.

The solar developers and their tariffs are:

• Acwa Power (Saudi Arabia)/Sunrise PV Systems (Greece) – 4.34 JDcents a kWh
• Saudi Oger (Saudi Arabia) – 4.598 JDcents a kWh
• Fotowatio Solar Renewable Ventures/ Abdul Latif Jameel Energy – 4.895 JDcents a kWh
• Hareon Swiss Holding – 5.43 JDcents a kWh

Saudi Oger will carry out its work near Safawi, while the other three sites are in the Mafraq development area, all in the northern governorate of Mafraq.

The Sunrise project was acquired by Acwa Power after it submitted such a low bid that many in the industry believe the project will be challenging to execute.

The twelve projects in the first round took 14 months to reach a financial close. They were delayed by lack of grid capacity and permitting and land issues.

The lack of a renewables precedent in Jordan also made the financing time-consuming. A key factor in its eventual success was the IFC arranging $207.5m in financing for seven projects with identical structures, while providing loans of $91.5m itself. EBRD, France’s Proparco and other development banks also participated.

They brought in commercial banks such as the UK’s Standard Chartered and Bahrain’s Arab Bank.