The European Bank for Reconstruction and Development (EBRD) this week announced a $100mn financing package for Jordan’s state power company Nepco to “help the firm address working capital constraints.” The EBRD says the longer-term credit facility will bolster Jordan’s plans to generate 30% of its energy from renewable sources (MEES, 31 July 2020) – presumably a nod to Nepco’s ongoing work to add the sufficient transmission capacity needed to handle peak loads from solar PV and wind.
But the loan, which brings the EBRD’s total Jordan energy financing to €535mn, also hints at Nepco’s precarious financial state – a fact highlighted in an IMF Jordan report released this week. According to the report, the IMF sees Nepco running negative operating balances through 2025 mainly due to energy subsidies and continued imports, mostly of Israeli gas from the Leviathan field (MEES, 4 December 2020). (CONTINUED - 381 WORDS)
