Ammon News - AMMAN Jordan and the Saudi Fund For Development SFD will ink tomorrow $40 million loan and guarantee agreements to finance an expansion project of an Amman power plant.

A government source said that the loan will be used to finance part of the JD127 million third expansion project of Al Samra Power Plant near Amman.

The project aims to increase the total capacity of the power station to 900 Megawatts to cater for a growing demand on electricity, the source added.

The project is expected to cover 40 percent of the Kingdom's needs of electricity through installing two 100-MW gas-fired turbines and a 132/15-Kilovolt voltage transformer.

Last month, Jordan signed a $52 million loan agreement with Kuwait-based Arab Fund for Economic and Social Development to finance the same project.

The SFD is a Riyadh-based fund that provides assistance to developing countries through soft loans to help carry out development projects in various sectors.

Between 1975 to 2009, the volume of the fund's assistance to Jordan totalled $264 million through 17 loans used to finance various infrastructure and social projects.

//Petra//