K&M served as the transaction advisor to NEPCO for the implementation of the repowering and expansion of the Hussein Thermal Power Station as the fifth IPP in Jordan. The project converted the existing 3×66 MW oil-fired facility into a 485 MW combined-cycle using natural gas and distillate fuel. The Central Electricity Generating Company of Jordan (CEGCO) was sponsoring the project, and the revitalized power plant will operate as an IPP under a Power Purchase Agreement (PPA) with NEPCO.
K&M performed a technical evaluation of CEGCO’s proposal and an extensive review of all project agreements, including the PPA, Implementation Agreement, and Lender Direct Agreements. Following K&M’s review, K&M supported NEPCO in negotiating the PPA for the project, which was signed in January 2016. The project will cost US$460 million and provide electricity at one of the lowest tariffs in Jordan’s conventional power sector. The project reached financial closing on February 2017.