Jordan hosts a number of locations dating from antiquity that have important religious significance. At the same time, this landscape of exceptional beauty is host to the largest power plant in the world of its kind. Situated just next to the small village al Manakher on the outskirts of Amman, the new power plant, IPP4, is operated by a subsidiary of the US power giant AES.

AES Jordan has received loans from international financial institutions including the World Bank and the European Bank for Reconstruction and Development. In 2007 the World Bank and the US export credit agency the Overseas Private Investment Corporation (OPIC) provided around USD 110 million for the construction of the first phase of the plant. The plant was commissioned in 2009 and has a capacity of 380 megawatts (MW). The second phase of the project included the development, construction and operation of a 240 MW 'trifueled' electric power plant by AES The total costs of this phase of the project were USD 360 million and shared between OPIC (USD 260 million) and the EBRD (USD 100 million).

Established in 1991 solely to finance the transition to market economies in former Soviet countries, the EBRD has since expaned its lending operations after the popular uprisings of the Arab spring to include Middle Eastern countries (and more recently those hit by the crisis in the Eurozone like Cyprus and Greece). While the EBRD has a mandate to promote sustainable development, the IPP4 project would seem to run counter to this end. While Jordan and other countries in the Mediterranean and North African region have huge potential for renewable energy, the bank chose the high-carbon Al Manakher  power plant.

Though the bank is now making inroads with lending to solar energy projects in Jordan, the fact that its first project in the country required an exception from its own environmental policies because of concerns about pollution is a worrisome sign.

As works began on the second phase of the plant, the project crept towards the borders of al Manakher. The nearest house is now just 20 metres away from the fence of the plant, and the village school is 150 metres from the plant. 

Already in 2007, residents were expressing concerns about the project, with one resident asking, “how and why was this particular site selected for this power plant and why it is not ok to have a plant further away from the village?” According to the World Bank “{...} It was explained to the people that the location of the plant is at a reasonable distance away from the village and the site was selected based on the availability of roads, available government land, proximity to the natural gas pipeline [900 metres to the west] and 400 KV transmission line [6 kilometres].”

But as the second phase developed, life in al Manakher has became more difficult. While the EBRD has said that the impact "from the power project and the existing IPP1 power station will not be significant' and that 'in the case of socio-economic conditions for the local population, the cumulative effect of both projects is considered to be beneficial," the reality appears more complex.  

Local community members complained about the levels of noise from the plant, especially during operations at night. Cracks have begun to appear in buildings, which locals attribute to construction and operation activities. The value of land is decreasing, they say, and there are concerns about the health of their children.

An OPIC report says that "Modeling indicates that noise from the proposed power plant alone is within the recommended IFC guideline values; however, cumulative noise may exceed the guidelines at some receptors at the village. These exceedances are primarily due to a change in operating mode of the existing plant due to a change in fuel. The project will be required to conduct a detailed noise study and provide a noise mitigation plan to address the issue." AES says that the noise monitoring study has been completed and submitted to the EBRD; however, locals claim that monitoring was not done properly, as they say engines were switched off during the monitoring exercise. 

There is an evident lack of trust and communication between locals and the company. The Environmental Impact Assessment commits the EBRD and AES to address issues raised during public consultation meetings, including the suitability of the site's location and solving the noise problem, but some still feel that not enough is being done.

Residents of al Manakher expected that the newly constructed wall would higher to ensure some noise protection from the engines, but this did not fully address the problem. The environmental impact assessment committed the company to provide water to the community using the company's water main. However the company receives its water from the Jordan Water Authority, so it is unable to provide water to the village, so it is unclear why such a promise appeared in the EIA. `

There were also complaints that the project did not provide sufficient and decent employment for residents of al Manakher. There is some attempts from the side of the company to play the role of socially responsible one providing for solar heaters to community. But people that are bothered with permanent noise and emissions in night hours, with deprived possibilities to move to another place as the land prices goes down, are unhappy both with the company's as well as government 's attitude to their life.

Since 2012 construction is underway on a third power station that will run on a mix of gas, heavy fuel oil and light fuel. Located 10 kilometres from the village, the IPP3 plant has the financial backing of KEPCO (Korea), Mitsubishi (Japan) and Wärtsilä (Finland). The 600 MW plant will use a dual fuel diesel engine generator technology, with the net output roughly equaling when using heavy fuels or gas. IPP3 is recoginised as the world's largest tri-fuel plant, initially planned to operate on heavy fuel oils. At USD 812 million, the project is one of the largest private participations agreed by the World Bank.

The project is central to Jordan's energy strategy for 2020, which includes plans for the exploration of extensive local reserves of oil shale, nuclear investments, a new gas terminal at the city of Aqaba and a dual natural gas/oil pipeline running from Iraq. Expected to come online in the fall of 2014, IPP3 is still under construction.

Media reports that the IPP3 project is being fitted with a control system to reduce nitrogen oxide (NOx) emissions in order to meet the environmental, health and safety guidelines set by the International Finance Corporation. The reports emphasis that in addition to the NOx technology, the plant will adhere to international standards for sulphur oxides and particular matter emissions, and will have a close-to-zero usage of water once the gas fuel is employed, further minimising its environmental footprint.

But the optimistic media reports about IPP3 have not increased hopes in al Manakher, since the experience of IPP4 tells another story.