KUALA LUMPUR: The US$2.1 billion (RM9.3 billion) oil shale-fired power venture in Jordan has reached a financial close as YTL Power International Bhd completes the transfer of another 15 per cent stake in it.
This increases YTL Power’s stake in the consortium, Attarat Power Company (Apco), to 45 per cent, putting it equal with another stakeholder — China’s Yudean Group.
The remaining 10 per cent stake in Apco is held by Estonia’s Eesti Energia AS.
Apco yesterday announced that it had reached financial close to the venture, the first oil shale power project in the kingdom.
Financial close occurs when all project and financing agreements have been signed and the conditions met.
It enables funds such as loans, equity and grants to start flowing so that the project can actually start.
Apco said in a statement the construction of the 554-megawatt power plant would kick off soon, with commercial operations expected to begin in mid-2020.
“Financial close entails notice to proceed with the construction,” said Apco chief executive officer-designate Jason Pok Hooi Loong.
YTL Power managing director Tan Sri Francis Yeoh Sock Ping said the company first brought its international independent power producer expertise to the project in 2011.
“We believe this is a unique project that will have a positive impact on the Jordanian economy as well as yield solid returns,” he said in a statement.
Apco said the project was the first to commercially utilise Jordan’s abundant oil shale reserves and would significantly reduce Jordan’s reliance on imported oil and gas.
“It is expected to meet 10 to 15 per cent of Jordan’s annual power demand,” Apco said.
YTL Power and the other two shareholders will provide base funding of up to US$528 million.
The remaining US$1.58 billion will be provided by China Export & Credit Insurance Corp.