Shams Ma'an achieves key milestone by signing agreement to secure 2 million square meters plot of land

Under the agreement, Ma'an Development Company (MDC) dedicates a 2 square kilometers plot of land within its territory for the project's commencement. The agreement was executed in the presence of His Majesty King Abdullah II of Jordan, during an official visit to Italy.

Shams Ma'an Power Generation PSC is a consortium of local and global companies established to build the world's largest PV plant in the Southern Parts of Jordan, with an initial capacity of 100 megawatt of electrical power, expandable to 200 megawatt. The consortium is composed of Kawar Energy (Jordan), Solar Ventures Srl (Italy), and 1st International for Investment & Trade Company (Jordan), and anticipates the project's investment around the $400m mark. Shams Ma'an is expected to generate hundreds of jobs, enhance further investments and developments, and foster technology-transfer of green energy competencies and skills in the Ma'an Development Area, in addition to supplying Jordan with a large share of its energy needs.

With Solar Ventures and 1st International for Investment & Trade joining the group, the consortium successfully acquired an all-embracing diversity in expertise; technological and business know-how, and pool of talents to implement the Shams Ma'an project. While Solar Ventures is a leading Italian based developer and operator of PV power plants and offers a well established brand with a large portfolio of plants, 1st International for Investment and Trade backs the venture with its strong business presence in Jordan, and ties to electricity distribution in Jordan dating back to the 1930s.

In their efforts to expedite the implementation of the project, the agreement signed between the consortium and Ma'an Development Company included a number of additional milestones. To name a few, the consortium will deliver a final feasibility plan including economic, technical, market, and other studies that will be required to successfully launch the plant.

"The report will include an assessment for the optimal solar plant size and technology, present several scenarios to compute the potential energy output levels, an evaluation of interconnectivity options to the national and other grids, an analysis of electricity tariffs with the grid and potential utility users, in addition to a complete financial model that incorporates all acquired data to assess the long-term feasibility of all proposed scenarios," says Kawar Energy's chairman Karim Kawar.

"Furthermore, we will commence in scoping international markets to identify potential technology suppliers, equipments, construction companies and contractors, financiers, underwriters, donor programs and environmental protection agencies to negotiate with or enter into agreements aimed at supporting the success and feasibility of 'Shams Ma'an'," continues Kawar.

Kawar Energy's CEO Hanna Zaghloul elaborates further on the agreement's scope of work. "A critical milestone of the agreement will be our upcoming discussions and negotiations for Power Purchase Agreements (PPAs) with the Jordanian government, NEPCO, and other authorities that are key elements of the project's long-term success. Given the tremendous supply in energy Shams Ma'an will provide, it is critical to conclude the power purchase agreements to ensure the future sale of produced electricity, and which in turn will have a determinant impact on the project's financing channels. Our negotiations will incorporate details to realize a fair price per kilo-watt to all concerned parties and the duration and terms of agreements, in addition to access to the Mediterranean Solar Plan," says Zaghloul.

CEO of MDC Mohammed Turk expressed the company's enthusiasm about the signed agreement, and said:

"MDC is very excited about this agreement, which brings the Shams Ma'an project very tangibly close to its ultimate launch phase. MDC has committed the 2 million square meters to the project for duration of 30 years. Furthermore, we are fully supporting the project's ambitious growth plans by availing an additional adjacent land as may become necessary under similar terms and conditions."

The consortium and MDC expect the Shams Ma'an project to complete its construction phase and commence full production by 2012.