Saudi Arabia’s Acwa Power has signed $54m of project finance agreements for its 60MW solar photovoltaic (PV) project in Jordan.

The project finance consists of a $27m A-loan from the European Bank for Reconstruction & Development, and a $27m B-loan from the Netherlands Development Finance Company.

The project, located in Mafraq, will cost $72m. This suggests a 75:25 debt to equity ratio.

Its project company is the Local Company for Water and Solar Energy Projects (LCWSEP), which will be part of Acwa’s new renewable energy subsidiary, Acwa Power RenewCo.

LCWSEP signed a 20-year power purchase agreement (PPA) and a transmission agreement with Jordan’s National Electric Power Company (Nepco) in January 2016. The project has a record low tariff for the country of 0.043JD (6.13$cents) a kilowatt hour (kWh).

Acwa then acquired the project from second round bidder Greece’s Sunrise Solar Energy.

A government guarantee was signed with the Ministry of Finance in April 2016. Financial close is expected in March 2017.

Of the four second round solar PV projects in Jordan, one, developed by Fotowatio Renewable Ventures (FRV), part of Saudi Arabia’s Abdul Latif Jameel, has already secured financing. A second FRV project is also close to reaching an agreement with development banks.

The fourth project owned by Saudi Oger is understood to be seeking buyers, due to the company’s financial troubles in Saudi Arabia.

Acwa is also developing a conventional independent power project (IPP) in Jordan, the 485MW IPP5 in Zarqa. The International Finance Corporation has offered to finance it.