10 Jul, 2008

Shoman: Electricity is one of the most vital infrastructure sectors that contribute to economic growth and enhancing investment opportunities in Jordan

Arab Bank has led a banking consortium in a loan deal totaling JD44.5 million in favor of the Kingdom Electricity Company (KEC), which will use the funds to spend on its investments in the field of energy, particularly financing the purchase of Irbid Electricity Distribution Company and South Electricity Company, which have been privatized.

In addition to Arab Bank, the consortium comprises Arab Jordan Investment Bank, Jordan Kuwait Bank and Cairo Amman Bank. The loan is guaranteed by KEC's stakeholders: Jordan Dubai Capital (JDC), United Arab Investors Company (UAIC) and the Kuwait Privatization Project Holding Co (KPPHC).

The agreement was signed by Arab Bank Chairman/CEO Abdel Hamid Shoman and KEC Chairman and CEO of JDC Samir Rifai. Also present at the signing ceremony were UAIC Chairman Fayez Tarawneh, KPPHC board member Ali Hassan Khalil and chairmen of the participating banks.

In remarks at the event, Shoman underlined electricity as one of the most vital infrastructure sectors that contribute to economic growth. He highlighted the successes achieved by JDC and its allies in this field, saying that such admirable achievements also indicate the growing investment opportunities in this key industry.

In light of the increasing investors' interest in the energy sector and the principal role of banks in supporting strategic and vital projects, Shoman said, Arab Bank believes it is important to actively participate in financing this strategic sector. He said such support would reflect positively on the situation of energy in Jordan, which is witnessing a growing demand, and help the bank keep up with growth in the national economy.

The project, whose costs exceed JD80 million, is part of a plan to restructure the electricity sector. It will secure more privatization revenues and offer electricity services to more than 35 percent of the population as services cover the northern and southern regions.

The two areas, which have considerable economic potential, are going through steady growth, acquiring their investment importance from the Aqaba Special Economic Zone, Jordan Valley and the city of Irbid.