China approves funding for Eesti Energia's Jordan project ({{commentsTotal}})

China has approved funding for the Jordanian oil shale project of the Estonian state-owned energy group Eesti Energia, removing the last obstacle to the signing of the €2.2 billion investment agreement.

"We have been informed by Chinese authorities that the Chinese government has confirmed a loan guarantee to the Jordanian electricity project," Kaarel Kuusk, Eesti Energia's communications manager, told BNS on Monday.

"The Chinese government's confirmation is a final and decisive one," he continued. "We now hope to complete the necessary procedures during February to bring the financing process to a successful conclusion."

In early May 2016, Eesti Energia signed an agreement to sell 45 percent of the sahres in its Jordan oil shale power plant and extraction project to Chinese state-owned company Yudean Group and will remain a minority shareholder in the project with a holding of ten percent. Under the agreement, co-developer TYL International Berhad will increase its stake from 30 to 45 percent and minority shareholder Near East Investments will exit the project.

The Jordanian project, which represents an investment of $2.2 billion, will be financed by the large Bank of China and Industrial Commercial Bank of China. A guarantee to the loan will be provided by Chinese export credit agency Sinosure. The implementation of the agreement was pending on the approval of Chinese financiers.

Once the agreement on building a 554/megawatt oil shale-fired power plant in Jordan is finalized, Guangdong Engineering Power Corporation will begin construction.

Eesti Energia has thus far invested approximately 25 million euros in the project and expects to exit it without a loss, CEO Hando Sutter has previously stated. According to Sutter, the exact numbers will be made public after the final financing arrangement has been agreed upon.

Editor: Editor: Aili Vahtla

Source: BNS



Opinion
Easter Monday a public holiday? But you're forgetting productionEaster Monday a public holiday? But you're forgetting production
Estonia’s Easter Monday time loop: Discussing an additional day off

Every year, Estonia reliably asks itself the question whether or not Easter Monday should be made a public holiday. Opinions differ. While one side emphasizes the importance of family time, the other thinks an additional day off would threaten economic growth.

Minister of Social Protection Kaia Iva (IRL).Minister of Social Protection Kaia Iva (IRL).
Samost: Kaia Iva’s charisma could help IRL out of long-term low

In Sunday’s “Samost ja Rumm” radio debate show, editor-in-chief of ERR’s online news, Anvar Samost, and journalist and former politician Hannes Rumm discussed the potential and actual candidates for the chairmanship of the Pro Patria and Res Publica Union (IRL). At the time of the broadcast, Helir-Valdor Seeder had not yet made his intention to run public.