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The Jordanian Gas Transmission Pipeline
Aqaba - Rehab
H.E. Eng. Sameh Fahmy, Minister of Petroleum and his honorable guests, Eng. Azmy Khuraisat, Jordanian Minister of Energy and Mineral Resources and Dr. Fayza Abu El Naga, Minister of Foreign Cooperation, attended on Saturday, June 5th, 2004, the signing ceremony of the finance contract for part financing of the investment cost of the Jordanian Gas Transmission Pipeline, amounting to up to EUR 100 million.
The contract was signed by Mr. Philippe de Fontaine Vive, Vice Chairman of EIB and Eng. Mohamed Tawila, Chairman of EGAS.
Objective of the Project:
To transport the natural gas delivered at Aqaba in southern Jordan to Samra and Rehab power stations in the north, 24 km away from the Syrian borders and some other Jordanian large industrial users.
Project Description:
The Jordanian Ministry of Energy and Mineral Resources, had called for an international tender among specialized companies of international standing for the financing, designing, building, operating, maintaining and marketing of a 393 km onshore gas transmission pipeline from Aqaba in southern Jordan to north of Jordan, for 30 years. The Egyptian Consortium (EPEG) including EGAS, Petrojet, Enppi and Gasco was declared winner for this project development.
A special purpose company "the Jordanian Fajr Company", completely owned by "the Egyptian Fajr Company" has been incorporated in Jordan for the Transport and supply of Natural gas.
The estimated total cost of the project is approx. 300 million US Dollars, 90 million US Dollars of which will be financed through the investors group, including the Ministry of Finance and the National Investment Bank and 110 million US $ will be financed through loans from the Housing Bank for Trade and Finance and the National Bank of Egypt.
In order to complete the financing of the project, EGAS was able to secure a finance contract with the European Investment Bank granting EGAS a credit equivalent to EUR 100,000,000 (one hundred million euros), that shall subsequently be used by EGAS to (i) lend to the members of EPEG consortium to fund their project equity contribution, (ii) lend the remainder of the loan directly to Jordanian Fajr.
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