Sep. 30--AMMAN -- The government on Tuesday signed an agreement with a business consortium, registered as the Qatraneh Electric Power Company, to build an electricity generation plant in Qatraneh, at a cost of around $455 million.

The consortium of the Qatraneh Electric Power Company comprises Korea Electric Power (KEPCO) and Saudi Arabia's Zenel Company, according to the consortium's Chief Executive Officer Young-sil Lee.

Energy and Mineral Resources Secretary General Farouq Hiyari said the ministry's strategic plan stipulates the building of electric power plants that can generate around 300 megawatts (MW) annually to meet the increasing demand.

By 2020, under the ministry's plan, the Kingdom's additional electric generating power should reach 4,000 MW, Hiyari indicated.

Under the agreement, the consortium will build the plant on the build-operate-own basis over a term of 25 years to generate electricity at a capacity of 373MW.

The first simple cycle phase of the project will go into operation at the end of November next year while the second combined cycle phase will become operative in August 2011.

The consortium yesterday signed the project agreements with the concerned government parties, Hiyari told The Jordan Times.

These included the signing of the land leasing agreement with the Ministry of Finance, the executive agreement with the Ministry of Energy and Mineral Resources and the water provision agreement with the Water Authority.

The project is considered the second of its kind in Jordan, implemented by a private entity and it is expected to cover the growing demand for electric power between 2010 and 2013.

The consortium should meet the financial closure requirements in October, according to the consortium's CEO.

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