This Project was approved in the context of the Bank's response to the COVID-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to COVID-19, and this deviation, can be found on our website.
The Project involves a senior unsecured revolving Working Capital Facility ("WCF"). The proceeds of the Bank's investment will be used to provide Jordan District Energy Company ("JDE") with short-term emergency liquidity support in the form of a WCF to help cover day-to day expenses such as payroll, electricity, and fuel due to a stretch in receivable collections.
The Government of Jordan ordered a lockdown of the country from 21 March 2020 - 24 May 2020, in response to the COVID-19 pandemic. This has affected JDE's business, being the exclusive provider of heating and cooling services to the Abdali development area, as most tenants remain closed during the lockdown. Business is not expected to return to normal before July 2020, thus resulting in an increase in JDE's cash conversion cycle and liquidity needs.
JDE's effort in tackling the impact of the COVID-19 so far have been concentrated on postponing payments. Despite these efforts, JDE is still expected to experience a cash shortfall throughout the year. The Bank's Resilience Framework is therefore crucial to help JDE overcome the temporary liquidity shortfall they are experiencing and to sustain its operations throughout the crisis until their customers return to business and collections of receivables improve.
ETI score: 75
JORDAN DISTRICT ENERGY COMPANY
JDE is an existing client that built and operates Jordan's first district energy plant, which provides exclusive cooling and heating services to Amman's new downtown area.
EBRD Finance Summary
Total Project Cost
EBRD financing is provided in the extraordinary circumstances of the COVID-19 crisis. Specific triggers for the Enhanced Additionality Approach will not apply.
COVID-19 crisis response: EBRD financing effectively bridges a liquidity gap due to adverse market conditions, the COVID-19 crisis.
Environmental and Social Summary
Categorised B (ESP 2019). Low Medium risk due to the use of ammonia for cooling and heating. JDE is an existing Client and previous ESDD (2014) and subsequent independent monitoring in 2017 identified that JDE has in place required containment measures for storage of ammonia as well as emergency plan for accidental release of ammonia. The Client submits detailed annual environmental and social reports along with the ESAP implementation report and a plan of actions for implementing recent audit findings. JDE has improved their E&S performance. Therefore, the ESDD for this transaction was based mainly upon most recent AESR and the recent audit report plus a questionnaire. The ESDD identified that the JDE has in place a robust business continuity plan and follows strict procedures related to containment of COVID-19 pandemic in line with WHO and national regulations. Current situation related to COVID-19 restrictions will not have any adverse impacts on implementation of the previously agreed ESAP and general compliance with EBRD environmental and social requirements. Adequate HSE resources are in place and there will be no retrenchment of personnel. The Bank will continue monitoring the E&S performance of the Client and their compliance with the Performance Requirements.
Technical Cooperation and Grant Financing
Company Contact Information
Laith Bani Hani
+962 78 930 0009
PSD last updated
01 Jun 2020
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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.
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Access to Information Policy (AIP)
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.
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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 firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.