PricewaterhouseCoopers (PWC) has been awarded the contract to provide consultancy services to National Electricity Power Company (Nepco) in preparation for the privatisation of the power sector. The award follows the grant of two loans totalling JD 40 million ($57 million) in late July towards the upgrade of Nepco's infrastructure (MEED 21:4:06).
Under the contract, funded by the World Bank, PWC will advise on the transition of the domestic electricity market from a single-buyer market dominated by Nepco to a wholesale and competitive one. The scope of works includes the preparation of a six-month study addressing issues such as the transition of the power market structure, legal framework, regulatory and pricing issues, power purchase agreements, benchmarking principles and new arrangements for regional electricity trade.Nepco recently secured two medium-term loans of JD 20 million ($28.4 million) each from Cairo Amman Bank and Arab Jordan Investment Bank.Each loan has a grace period of three years and Nepco will use the funds to finance the construction of new substations and upgrade existing ones in the east and south of Amman, in Dulayl and in Salt. New power lines connecting the substations are also planned.