Eversheds has advised Scatec, a leading solar energy provider, on a joint venture to construct and operate three solar energy projects in Jordan.
The projects will be developed jointly by Norwegian company Scatec Solar and its Jordanian partners, Quest Energy Investment LLC, European Jordanian Renewable Energy Projects LLC and Greenland Alternative Energy LLC. Scatec Solar will construct the plants and in addition provide operation and maintenance services when the plants are finalised and in operation.
Annual production from the three plant is estimated to produce 104,000 MWh, generating revenues of some USD 17 million per year. The electricity produced will be sold under a 20-year power purchase agreement with the National Electric Power Company (Nepco) guaranteed by the Jordanian government. All plants are located in the area nearby Ma'an City in southern Jordan.
The debt financing will be provided by The European Bank for Reconstruction and Development (EBRD) and the French development agency Société de Promotion et de Participation pour la Coopération Economique (Proparco).
Eversheds advised on all construction and financing documents.
The cross office Eversheds team based in Amman and London was led by Banking Partner Indraj Mangat working alongside Partners Rob McNabb, Iyad Zawaideh, Jean-Pascal Boutin and Associates Peggy Thom ,Adeeb Jouhar, Matthew Gibbs and Trainee Omer Mahdi.
Indraj Mangat commented:
“We continue to be wholly committed to helping develop the renewable energy sector in Jordan as well as across the MENA region. The MENA region has witnessed a real pro-solar shift in policy and these projects are testament to the opportunities available for renewable energy developments.”
Snorre Valdimarrson, General Counsel for Scatec Solar, commented:
“The Eversheds’ team has been a great support in closing the transaction with its thorough expertise of infrastructure project finance, hands on approach and great commercial understanding and ability to provide advice and solutions to issues as they occurred.”
