West Irbid Wastewater Treatment Plant

Location:

Jordan

Project number:

54056

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Approval date:

08 Feb 2023

Status:

Exploratory

PSD disclosed:

26 Sep 2022

Project Description

Provision of a sovereign loan of up to EUR 15 million to the Hashemite Kingdom of Jordan to finance the construction of a new wastewater treatment plant (WWTP) in West Irbid. The loan is envisaged to be co-financed by i) an investment grant of EUR 8 million from the UK's High Impact Partnership for Climate Action (HIPCA) and ii) an investment grant of EUR 3 million from the EBRD's Shareholder Special Fund (SSF).

Project Objectives

The new and modern WWTP is part of a system design improvement under the EBRD-funded West Irbid wastewater project, which is expected to reduce the energy and carbon footprint of the project (to be confirmed during due diligence), and reduce operational and maintenance costs. The WWTP will be located in West Irbid in an area (which is subject to environmental and social due diligence by the EBRD), with a lower altitude relative to the sewage networks which allows for wastewater to be conveyed by gravity instead of energy-intensive pumping stations. This will significantly enhance the sustainability of the wastewater system by rationalising the need for pumping stations, in addition to alleviating pressure on the existing WWTP in the area (Wadi Al-Arab) which is nearing capacity. The treated final effluent from the new WWTP will be re-used downstream with the potential for the by-product (wastewater sludge) to be also utilised (subject to its technical and economic feasibility).

Transition Impact

ETI score: 68

The primary transaction quality is Green given that the new WWTP is expected to enhance the sustainability of the wastewater system by reducing the need for pumping stations, in addition to alleviating pressure on the existing WWTP in the area (Wadi Al-Arab). The secondary transaction quality is Inclusive as the project is expected to enhance employment prospects and build the skills of young people through providing replicable and nationally accredited training programmes. 

Client Information

JORDAN SOVEREIGN

EBRD Finance Summary

EUR 15,000,000.00

Total Project Cost

EUR 26,000,000.00

The project is expected be co-financed by investment grants from the UK's HIPCA facility (EUR 8 million) and the EBRD's SSF (EUR 3 million). 

Additionality

EBRD offers a tenor, which is above the market average and is necessary to structure the project as well as providing expertise and international procurement and environmental and social best practice.

Environmental and Social Summary

Categorised B (2019 ESP).  The project involves the development of a greenfield wastewater treatment plant (WWTP) in support of an existing Bank project that will provide first time wastewater network connections to households in West Irbid.  This project initially included treatment of wastewater at the existing Wadi Al-Arab WWTP.  During the implementation phase, however, it was determined that establishing a new WWTP would result in various benefits.  These include alleviating pressure on the Wadi Al-Arab WWTP, which is close to capacity as well as removing the need for numerous pump stations, instead utilising gravity for wastewater transfer thus reducing energy demand.  The proposed WWTP is below the EBRD capacity threshold of 150,000 population equivalent for WWTPs and has been categorised B.

Independent E&S DD is currently in progress as part of a detailed feasibility study. The ESDD includes an assessment of impacts which will be subject to further analysis as part of a formal EIA process for permitting purposes post-signing.  EBRD will support this assessment process through a technical corporation assignment. The ESDD includes developed on an ESAP to structure the Project in line with the Bank's requirements.  This will include the development of various E&S management plans and procedures, including with respect to labour matters.

The WWTP will treat wastewater to EU standards. While located near to a wadi, the project will discharge treated wastewater into an existing pipeline, which discharges to an irrigation reservoir. Two water wells are located near to the site, the nearest at 50 meters.  The ESDD is considering potential risks to such resources but the WWTP design will nevertheless include measures to avoid (and contain) any potential pollution and contamination risks. Sludge management and disposal/re-use is currently being considered as part of the feasibility study and the ESDD.

The proposed WWTP location, which was initially considered for a pumping station, is not within any protected areas or would affect any sensitive biodiversity.  The WWTP will be located on private land which is partly used for agriculture and would impact a dwelling (although not inhabited).  The potential for formal expropriation exists and the ESDD is currently updating the existing land acquisition framework to include the WWTP.  Initial indications are that land acquisition will not result in significant impacts but this will be confirmed by the ESDD. Land owners and users will be compensated for their land, including assets on such land, and livelihoods restored.  Agricultural dwellings and activities are located nearby to the WWTP location but a sufficient distance away to avoid nuisance impacts such as noise and odour. Saydour town is nearby. The WWTP will incorporate measures to reduce such impacts as well as impacts associated with construction, such as dust. The WWTP will be connected to the planned West Irbid network and measures will be put in place to avoid impacts during the installation of pipelines, including to land owners.

The ESDD will update the existing Stakeholder Engagement Plan (SEP) to include the WWTP and this will be disclosed together with an updated Non-technical Summary.  This PSD will be updated when the ESDD is complete.

Technical Cooperation and Grant Financing

A. Technical Cooperation (TCs):

Comprehensive feasibility study including Environmental and Social Due Diligence (ESDD), procurement support and construction supervision.

B.  Co-investment grants / Concessional Finance (Non-TC)

- EUR 3.0 million investment grant (to be provided by the SSF); and

- EUR 8.0 million investment grant (approved by HIPCA).

The grant co-financing is needed to provide the necessary technical assistance for the implementation of this critical infrastructure project, in addition to enhancing the capacity of the client during the implementation of the project. The capex grants will also mitigate affordability concerns in light of challenges in achieving cost recovery. Therefore, the grants associated with the project are crucial to allow for the delivery of critical infrastructure assets and services in this sector. The provision of the grant co-financing is expected to be accompanied by technical assistance and/or policy engagement to improve cost recovery ratios.

Company Contact Information

Sultan Mashaqbah
Sultan_Mashaqbah@mwi.gov.jo
+962 6 5652265
http://mwi.gov.jo/Intro/Pages/default.aspx
K. Hussein St. 34, Amman, Jordan

PSD last updated

26 Sep 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

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The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

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The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

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The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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