"THE ENERGY INFRASTRUCTURE PROJECTS ARE REAL

OPPORTUNITIES FOR INVESTORS"

The Hashemite Kingdom of Jordan stands at the cross-roads of trade and

cultural exchanges in the Middle East and Africa region. Through its

proven commitment to just peace and security, its active pursuit of

economic growth, and the excellent qualities of human resources, the

country is now positioned to realize its full potential as a hub for

development and a regional catalyst for investment opportunities. In

recent years, Jordan's much acclaimed record in domestic development

has enhanced its eligibility to play an instrumental role in the promotion

and expansion of regional and global trade.

Within the Kingdom, remarkable progress has been made toward

entrenching the democratization process and toward effecting a through

structural adjustment of economy. In order to ensure that, emphasis has

been placed on enhancing the role of the private sector, both in the short

and long-terms.

Energy

Energy is of vital importance for the process of production and

manufacturing and as such a key element of sustainable development and

has always been important to humanity. During the last two decades, the

rising cost of energy has posed a difficult challenges for Jordan due to the

country's meager local resources of economic energy and its reliance on

imports.

In recent years, Jordan has been undergoing a momentous transformation

process, based on a major restructuring of the country's economy.

In order to fulfill the security of supply and overcome the negative effect

of the current energy situation, His Majesty King Abdullah Bin Al

Hussein II, entrusted a Royal Committee headed by His Royal Highness

prince Hamzeh Bin Al Hussein to review and modernize the country's

comprehensive Energy Strategy and in order to ease the pressure on the

national economy many infrastructure energy projects were determined in

the updated Energy Strategy with the total of $ 14-18 billion up to 2020

in different fields such as power sector, oil sector, oil shale exploration,

improving energy efficiency, renewable energy and natural gas. In

addition, the oil market will be open for competition and private sector

firms and international companies can compete and invest in Jordan's

burgeoning downstream market and achieve the most efficient allocation

of resources. Furthermore, four marketing and logistic companies will be

established and transparent pricing policy reflecting international prices

will be applied.

The Government of Jordan is proud of the reforms and development that

have taken place in the energy and remains strongly committed to

maintaining and deepening the reform program with the main priority of

attracting long-term foreign investment and capital inflows and in order

to succeed, the government has been working hard to create stable and

investor friendly environment based on openness, consistency and non-

discrimination including drafting laws and legislations with terms

favorable for private investment, privatization of state owned assists,

developing of a modern infrastructure and investing in the development

of Jordanian labor force.

At present there are several opportunities for interested investors in

energy sector and need for new investment in order to meet growing

demand for energy and we are inviting investors within the region and

beyond to enter into the Jordanian energy market with a set of investment

projects which are by no means exhaustive; because, like all democratic,

promising, stable and emerging economies, Jordan has a great deal to

offer.

"THE INVESTMENT IN ENERGY SECURITY FOR TOMORROW,

AND THE DAY AFTER TOMORROW, HAS TO BEGIN TODAY"

Major Investment Opportunities in the Energy Sector

in Jordan

Objectives of all the Projects:

Objectives expected to be achieved by implementing the below energy

projects are to satisfy increasing energy and electricity demand,

encourage private sector investment in the energy sector and increase job

opportunities during projects implementation and positively affect the

general economy situation in Jordan.

Oil Sector:

* Project Title: Jordan Petroleum Refinery Company's Fourth

Expansion Project

Project Description

Jordan Petroleum Refinery Company (JPRC) is the single refining

company with a capacity of around 100,000 B/D (4.4 MM tones/year).

This company is going to be modernized and expanded in order to meet

the projected growth in Jordanian demand for light and intermediate

petroleum products, and to comply with the world-wide move to cleaner

fuels.

The expansion of the company will consist of:-

• Increasing the crude distillation capacity to be 18000 ton/year to

increase production of petroleum products by adding vacuum units,

RFCC, Hydro crackers.

• New reformer and isomerisation units to enable unleaded gasoline

production.

• A distillate hydrotreater for low sulfur diesel products and Naphtha

units.

• Increasing the storage capacity .

• Adding Sulfur plant, Hydrogen plant and Solvent deasphalter units.

The estimated cost of the project is around US$ 1.5 billion. The refinery

has completed all its required feasibility studies and the strategic investor

will be selected during 2009.

Project Title: Restructuring the Petroleum Sector

In order to proceed with the program of restructuring and liberalizing the

oil sector and open the market for competition, four

marketing/distribution companies and one logistic company will be

established. The tenders for establishing these companies was issued on

September 14th 2008. The qualified companies will be invited to submit

their financial and technical proposals by the end of September 2009.

Electricity Sector

Project Title: Construction of Electricity Generating Units on

BOO basis

(The additional generating capacity of 4000 MW

is needed till the year 2020).

Project Description

Due to the rapid growth in demand for electric power in Jordan, the

Government of Jordan decided to invite foreign investment and develop

its first IPP in the country with the capacity of 370 MW. The first phase

of this project is already in operation since July 2008 and the second

phase as a combined cycle will be in operation in July 2009, while the

second IPP project with the capacity of 373MW is in process. The

commercial operation of the first phase will be in November 2010, and

the second phase in August 2011.

Meanwhile, in order to increase the electricity capacity of generating

system to meet the local electric demand which is expected to grow at

7.4% during the period 2008-2020, more than 4000 MW is needed as an

additional capacity to be added to the system with an average of 300 MW

per year on BOO basis which consider as continuous projects using

various technologies with the total cost of $US 4-5 billions.

Renewable Energy

Jordan will promote the Renewable Energy Source to share 7% in the

primary energy mix in 2015, and 10% in 2020.

To achieve this, 1200 MW of renewable energy will come on pipeline

projects through wind and solar energies.

Wind Energy Projects:

Tow Lots of Wind Farm projects approx. 300 MW each is going to be

implemented. The First Lot compromises three projects in three sites, Al-

Kamshah, Al-Fujeij and Al-Harir.

The first wind project at Al-Kamshah site (north of Jordan) with a

capacity of 40 MW is in final stage of negotiation with the preferred

bidder (Greek Company) and planned to be in operation during the year

2010. The second project at Fujeij site (east of Jordan) with a capacity of

90 MW is tendered for prequalification in April 2009 and planned to be

in operation in 2011.

In addition, Jordan would like to see more rapid development of wind

parks, and so it is intended to Pool the potential wind park sites at Harir,

Wadi Araba and Ma'an (south of Jordan) with the capacity of 300-400

MW in one international bidding process at the end of 2009.

Solar Energy Projects:

The Government of Jordan is seeking to increase the solar thermal

applications in all sectors and encourages Solar Thermal Application

(SWH) in households and major housing schemes. Currently 14% of the

housing schemes are applying SWH and is expected to reach to 20% by

2013. In addition, Jordan is seeking to add 300MW of Concentrating

Solar Power (CSP) in its electricity generation by 2020 and introduce

Photovoltalic System in remote areas.

Oil Shale
Jordan will promote the oil shale as a new source of energy to share 11%
in the primary energy mix in 2015, and 14% in 2020 by attracting the
private sector to invest in oil shale in the area of:-
- Generating electricity through direct burning
A frame agreement was singed on April 30th, 2008 with Estonian
Governmental Electricity Company to develop a 600-900 MW project
for power generation using direct combustion of oil shale on BOO
baiss. A complete proposal will be submitted within a period of three
years and the expected commercial operation date is 2015.
- Surface retorting to produce oil
In regard of the development of oil shale surface retorting, two stages
strategy has been adopted; the first stage started by issuing call for
proposals and eight companies signed memorandums of understanding
where four companies are conducting exploration program and later a
feasibility studies will be conducted depending on the results of their
studies and the other four companies are preparing a bankable
feasibility studies to prove the feasibility of such investment and
technologies and concessions will be granted accordingly. The second
stage will be launched after completing the exploration program of the
uranium deposits during the 2nd quarter of 2010 and new blocks will
be opened to attract new interested companies.
- Deep oil shale
A Memorandum of Understanding (MOU) was signed with Shell
Company to evaluate, develop and exploit the deep oil shale resources
for extraction of oil through a process called In-Situ Conversion
Process (ICP). The government signed a commercial agreement for
this project with Shell company. This agreement is in the process of
approval by the Parliament.
Energy Efficiency
Implementation of intensive energy efficiency programs.
Jordan is in the process of implementing a conservation program
which has a potential to reduce energy consumption by 20%.
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- Exempting the Energy Saving Bulbs from custom duties.
- Providing some incentives to replace old vehicles in the transport
sector.
- Developing a program to increase the use of domestic Solar Water
Heaters.
Initiating a progr