Provision of a senior secured debt of USD 1.7 million to finance the following:
- USD 0.85 million (EUR 0.7 million) to re-finance funds utilised by Engicon O&M (the "Company or Client") to construct two fully operational Wastewater Treatment Plants ("WWTP") and to assist the Company with further developing and eventually partially financing other pipeline WWTPs and
- USD 0.85 million (EUR 0.7 million) to help finance the construction of a new WWTP in Egypt with a capacity of 2,400 m3/ day. Total project cost of the WWTP is around USD 1.7 million. The remaining portion of project cost will be financed from Engicon O&M's own cash balances and a grant with the amount of USD 0.2 million (the "Project")
- Through EBRD's support and financing, the Project is expected to contribute positively to addressing the water challenges in both Jordan and Egypt.
- Loan proceeds utilized to construct the new WWTP in Egypt with a capacity of 2,400 m3/ day will help introduce a sustainable water recycling system for a water intensive industrial manufacturer, thus resulting in water savings of around 80 per cent.
- Moreover, loan proceeds will support expanding the Company's new innovative business model of developing WWTPs for industrial clients on a DBOT basis in both countries, thus resulting in further water savings in other settings
- The Client is expected to benefit from EBRD's technical expertise in this area, as a technical, environmental, and social due diligence has been conducted to ensure that the WWTP to be constructed in Egypt is developed on a best practise basis
- The Project is also expected to be "Gender Additional" as it will support the Company with the implementation of an awareness raising campaign on gender-based harassment in the workplace, and an associated Human Resource grievance mechanism to report and resolve potential instances of harassment in the workplace.
- Important to note that Jordan and Egypt are considered amongst the most water scarce countries in the world. Jordan ranks as the fifth most water-stressed country in the world, with per capita water availability standing at 140 m3/ year, far below the absolute water scarcity line of 500 m3/ year. While Egypt is considered one of the three most water stressed countries in the EBRD region, with the water deficit expected to reach circa 59 per cent by 2050.
ETI score: 80
Primary Quality: Competitive
- The sub-operation changes the strategic orientation of the business (e.g. focusing on new client or product segments)
- The sub-operation improves productivity and/or profitability, as measured by improvement in EBITDA margin or labour productivity.
- The sub-operation will demonstrate new products / processes (new replicable and significant at industry scale).
Secondary Quality: Green
- The sub-operation will increase environmental performance through better management practises; energy or resource efficiency technologies or business models.
ENGICON O&M COMPANY
EBRD Finance Summary
Total Project Cost
- Risk Mitigation EBRD's long term relationship with a client provides comfort to the client to be willing to take on more risk and/or finance, enabling outcomes such as innovation or expansion into new markets
- Policy, Sector, Institutional, or Regulatory Change: EBRD's involvement in a project is considered additional when it is designed to trigger a change in the policy, sector, institutional or regulatory framework, or enhance practises at the sector or country level (e.g. an introduction of cost-reflective pricing of energy, water etc.)
Standard-Setting: Helping Projects and Clients Achieve Higher Standards- Client seeks/ makes use of EBRD expertise on higher financial, environmental, and social standards, including through financial covenants
Environmental and Social Summary
Categorised B (ESP 2019) and Low/Medium Risk. The Project, and the construction and operation of small WWTPs may result in some temporary E&S risks and impacts but these are expected to be readily mitigated or addressed. Engicon is an existing Client of the Bank and has confirmed they have the resources and capacity to comply with the Bank's E&S standards.
ESDD comprised a review of the E&S documentation of the previous project with Engicon (DTMID 46889), interviews with Client's relevant representatives, and a visit to where the proposed WWTP will be constructed.
ESDD showed that Engicon has an Environmental, Health and Safety Management System and labour practises in place in line with ISO standards and BAT, with the subsequent relevant policies and management plans. The WWTP is located within the manufacturing site in an industrial area and is not associated with any E&S red flags. An Environmental and Social Impact Assessment is currently being undertaken for the facility, and the receipt of the permit is included in the ESAP as a CP to first disbursement. A Sanitary Protection Zone is defined and the interface with staff workers will be further defined in specific management plans. The beneficiary has a robust integrated EHSS Management System that follows BAT and international standards. the Off-taker is regularly audited by their export market on their health and safety, labour, environment, and quality aspects, and the previous 3 years audits have not resulted in any significant divergences from the standards. The same policies and procedures will apply to all employees on site, whether they are direct or contracted.
Grievance mechanisms are in place including whistle blowing policies, and overtime hours are well-controlled.
An E&S Action Plan has been developed for the Project and it includes obtaining all relevant permits for the site, developing a specific ESMS for the WWTP, incorporate EHSS requirements in contractors' tender documents, implementation of a routine maintenance program for the equipment. The Company will be required to submit annual E&S reports to the Bank for project monitoring.
Technical Cooperation and Grant Financing
- TC: HR Awareness Campaign on Gender-Based Harassment in the Workplace
- Objective: The TC will help the Client develop and implement an awareness-raising campaign for staff in their offices and the field in gender-based harassment in the workplace. The TC will also help the client integrate a grievance mechanism for reporting gender-based harassment in the workplace, for cases to be addressed safely and confidentially.
- Funding Source: SSF
- Amount / Currency: Estimated cost of the TC is up to EUR 75,000. The TC is pre-approved under the Gender and Economic inclusion TC Framework (TCRS 12804).
- Client contributions:The Client will provide in-kind support in the form of office space and communication connections to facilitate implementation of the TC. The Company will also appoint staff from the Company to Support the Consultants in the development and implementation of these activities.
Company Contact Information
PSD last updated
15 Oct 2021
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Independent Project Accountability Mechanism (IPAM)
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