Status: Proposed
Timeframe: 2026-2028
Area: Al Khanasiri, Mafraq District
AIIB Investment Amount: 300 million USD
Total Project Cost: 900 million USD
Co-financier: Unclear
E&S Category: A
Project details: The project involves the development, construction, and operation of a greenfield combined-cycle gas-turbine (CCGT) power plant of 700MW capacity as well as associated infrastructure, consisting of a natural gas pipeline to supply imported fuel and power evacuation through a 400-kV high-voltage substation and transmission lines.
Project Concerns:
Environmental
There is a risk of a carbon lock-in due to the large scale of the project and its greenfield approach, which involves the building of a completely new facility. In addition, the project is supported by a 25-year power purchase agreement (PPA) signed between the project company and the National Electric Power Company (NEPCO) in Jordan.
The planned location for the plant is near Al-Khanasiri village in Mafraq, surrounded by several villages. This area already faces severe water scarcity and is among Jordan’s most water-scarce areas, which could be stressed more by operational impacts of the plant involving high water consumption, wastewater, air emissions (NOx, CO, GHGs) as well as risks from associated gas pipelines and transmission infrastructure.
Construction risks include noise, vibration, dust, air quality impacts, waste, wastewater and soil erosion.
Transparency
The fact that the IFC is also investing 200 million USD in the construction of this gas-fired power plant is not apparent from the AIIB's Project Summary and is not communicated transparently.
Other Concerns
The parent company of the AIIB's client, Etihad Development Company, is Etihad Water and Electricity, which keeps investing in gas and therefore is listed on urgewalds Global Oil & Gas Exit List (GOGEL). The company has been flagged by the Boycott UAE Campaign as lacking transparency and being potentially linked to Environmental and Human Rights violations.
CSO reports: -
Organization monitoring: Phenix Center for Economics & Studies (PCEIS)
Further information:
AIIB-Page
IFC-Page
Last update: 07.10.2026