Implementation Status & Results Jordan Promotion of a Wind Power Market (P093201)

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized The World Bank Implementation Status & Results Jordan Promotion of a Wind Power Market (P9321) Operation Name: Promotion of a Wind Power Market (P9321) Project Stage: Implementation Seq.No: 6 Status: ARCHIVED Last Modified : 3-Jun-211 Country: Jordan Approval FY: 28 Product Line: Global Environment Project Region: MIDDLE EAST AND NORTH AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Energy and Mining Key s Board Approval Original Closing 31-Dec-212 Planned Mid Term Review 1-Oct-211 Last Archived ISR 3-Dec-21 Effectiveness 26-Nov-28 Revised Closing 31-Dec-212 Actual Mid Term Review Global Environmental Objectives Global Environmental Objective (from Project Appraisal Document) The main objective of the project is to increase electricity supply from renewable energy sources in a sustainable manner through the private sector and thereby help reduce the level of carbon emissions from hydrocarbon-based power generation sources. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) losure Authorized Public Disclosure Authorized Component Name Component Cost Development of a Promotional Wind IPP Power Plant.9 Jordan Renewable Energy and Energy Efficiency Fund 3.4 Renewable Energy Technical Assistance Support 1.4 Development of a Market for Renewable Energy.3 Overall Ratings Previous Rating Current Rating Progress towards achievement of GEO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating NA Implementation Status Overview 1. An energy mission to Jordan was carried out during May 8-16, 211, including supervision of this project. 2. The tender process of the Fujeij Wind IPP Project is progressing. The RFP was issued in July 21 along with the full tendering package. Bidder meeting and site visits were also held in August 21 and the process of the bidder project agreement mark-up and clarifications has been completed. The deadline for submission of bids was March 211. Page 1 of 5

2 However it was extended twice to May 15, 211 and now to July 14, 211. The final extension was requested by bidders to allow for sufficient time to prepare bids. It is hoped that credible and competitive bids will be submitted as moving forward in this project is essential to the development of renewable power in Jordan. 3. The selection of the consultants for the three assignments, financed by the GEF Grant, and contract awards were completed in October 21 and work under the contracts is now well progressing. The three assignments are (1) Integration of Wind Farms in the National Electric System of Jordan; (2) Strengthening the Legal, Regulatory and Institutional Frameworks for the Development of Renewable Energy Resources; and (3) Estimating Indicative Prices for Various Renewable Energy Products. The execution and completion of these consultancy assignments and associated analytical work and recommendations will be essential for the implementation Jordan#s renewable energy development strategy 4. The establishment of the Jordan Renewable Energy and Energy Efficiency Fund ( Jordan REEF) continues to experience delays and that could impact Component 2 of the GEF Grant including the provision of US$3 million GEF performance-based subsidy to renewable power projects (in principle subsidy to the Fujeij Wind project) and which was envisaged to be channeled through the Jordan REEF. Although a temporary renewable energy and energy efficiency law was approved by the Cabinet and Royal Court in early 21, requiring the establishment of JREEF, however, the law could not be brought to the parliament for its approval till recently. The parliamentary energy committee had reviewed the temporary law and provided comments which are being incorporated in a final draft of the law to be approved by the parliament. The main change proposed relates to the establishment of Jordan REEF as a department within the MEMR rather than as an autonomous public entity. The Bank team recommended to MEMR that the institutional framework as elaborated in the temporary law be retained to the extent possible and adequate steps need to be taken to ensure that Jordan REEF is run professionally with suitable staffing, office space and budget for its programs. MEMR hopes that the parliament will approve the draft law in the coming weeks to proceed in establishing the JREEF. Results Global Environmental Objective Indicators Electricity supply from grid-connected renewable power 72 GWh RFP issued. electricity supply will be provided when power plant is constructed 272 GWh 31-Dec-212 The number of private developers of renewable electricity generation One or more 31-Dec-212 RFP issued. 15 private developers are pre-qualified for Fujiej. However participation will be achieved only when projects are developed Page 2 of 5

3 Avoided direct CO2 emission 32,5 tons per year Will be achieved when renewable projects are developed and operational 122,5 tons per year 31-Dec-212 Intermediate Results Indicators Risk and barriers for independent wind power development Gaps in the legal, policy and Udner Development regulatory framework for electricity withrespect to renewable energy Renewable Energy and Energy Efficiency was approved by Government in Feb 21 but now pending parliament approval. Bylaws and regulations are under development Legislative changes enacted 3-Jun-211 Financing mechanism for renewable energy No formal financing mechanism for renewable energy in place. Delayed JREEF establishment is pending parliament approval of the REEE Law JREEF established and operational 28-Feb-211 Page 3 of 5

4 The capacity of NEPCO and MEMR to incorporate renewable energy, including wind power, in energy planning model Weak capacity TA is on going TA is on going and expected to be completed this summer Renewable energy, including wind power, fully incorporated in the energy planning 3-Jun-211 Status of the contract for development of the wind power plant. No contract in place. No contract in place yet Bids are due on July 15 A contract for development of the wind power plant signed and project financing close completed. 31-Mar-21 Data on Financial Performance (as of 24-May-211) Financial Agreement(s) Key s Project Loan No. Status Approval Signing Effectiveness Closing P9321 TF Effective 28-Aug Aug Nov Dec-212 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P9321 TF Effective USD Disbursement Graph Page 4 of 5

5 Key Decisions Regarding Implementation 1. The tender process of the Fujeij Wind IPP Project is progressing. The deadline for submission of proposals is extend to July 14, Work is progressing in the executing of the three consultancy assignments financed by the GEF Grant. These assignments are (1) Integration of Wind Farms in the National Electric System of Jordan; (2) Strengthening the Legal, Regulatory and Institutional Frameworks for the Development of Renewable Energy Resources; and (3) Estimating Indicative Prices for Various Renewable Energy Products. The execution and completion of these three consultancy assignments and associated analytical work and recommendations will be essential for the implementation of Jordan's renewable energy development strategy. 3. The establishment of the Jordan REEF continues to experience delays and that could impact Component 2 of the GEF Grant. After the parliament approves the draft renewable energy and energy efficiency law, the Ministry of Energy expects to move forward in establishing JREEF. Restructuring History There has been no restructuring to date. Related Projects Page 5 of 5