MR3: GAM Solid Waste Crisis Response - Cell 6

Location:

Jordan

Project number:

52515

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

29 Jan 2021

Status:

Approved

PSD disclosed:

25 Jan 2021

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

On 24 November 2016, the Bank signed a project with the City of Amman to finance priority solid waste investments in Amman (the "Project"). The financing is structured in two tranches: 

  • Tranche I, consisting of JOD 40 million, committed at signing and used to refinance GAM's existing debt to release funds for a comprehensive solid waste crisis response programme. Tranche 1 is co-financed by a GBP 5 million investment grant by an international donor for urgently needed solid waste investments.
  • Tranche II, consisting of up to EUR 50 million loan from EBRD, remains uncommitted and will finance a series of investments aimed at addressing the City's urgent solid waste needs. Tranche II components are expected to be co-financed by capex grants of up to 50 per cent, provided by international donor(s) and the Bank through its Shareholder Special Fund ("SSF"). To date (June 2020 update), the Bank has financed 5 sub-projects under this Tranche as follows:
  1. Tranche II-A:  signed on 10 May 2017, for the construction of a fifth cell at Al-Ghabawi Landfill and its associated leachate lagoons. The component is financed by a JOD 3.25 million EBRD loan and a GBP 4.25 investment grant.
  2. Tranche II-B: signed on 9 May 2018, to finance the purchases of 75 compactors and other equipment to be used by GAM in solid waste operations. The component is financed by a JOD 9.9 million EBRD loan and two investment grants of GBP 5.63 million and USD 7.4 million respectively.
  3. Tranche II-C: signed on 29 November 2018, to finance the capping of cell 4 wells, drilling and installation of the Landfill Gas Recovery ("LFG") collection system, and connecting it to the existing LFG system for cells 1,2 and 3. This component is financed by a JOD 3.2 million EBRD loan and a EUR 3.8 million grant.
  4. Tranche II-D: signed on 19 December 2019 , to finance the upgrade and rehabilitation of Al-Shaer waste transfer station. This component is financed by a JOD 2.5 million EBRD loan and a grant of USD 3.5 million
  5. Tranche II-E: signed on 19 December 2019 , to finance the purchase of 25 sweeper vehicles for use in solid waste operations in Amman. This component is financed by a JOD 2.4 million and a grant of EUR 3.0 million.

The Bank is now looking to sign Tranche II-F, which involves financing the construction of Cell number 6 at Al-Ghabawi landfill and the supply and installation of a new gas turbine, which will be connected to the existing landfill gas recovery system at the landfill.  The Project will be financed by an EBRD loan of JOD 7.9 million accompanied by a EUR 5.0 million grant from the European Union.

 

Project Objectives

The financing package forms part of the EBRD's Refugee Crisis Response Programme. GAM, which hosts around 30 per cent of the Syrian refugee population in Jordan, is largely affected by the on-going refugee influx. This places a heavy strain on Amman's municipal infrastructure and in particular on the solid waste management system. There is an urgent need to strengthen GAM's resilience as well as to optimise its financing, and Tranche I will allow GAM to liberate urgently needed funds to enable it to deal with the on-going challenges.

Tranche II of the investment package is targeted towards financing specific investments in the solid waste sector to mitigate the effects of the refugee influx and provide more sustainable and long-term solutions. These investments will be assessed on a project-by-project basis and are expected to be co-financed by investment grants made available by other partners, including, but not limited to, the European Union.

Transition Impact

ETI score: null

  • Institutional Support: The Project is expected to facilitate a comprehensive institutional support programme. The programme will introduce measures to increase the operational and financial management of solid waste services, leading to further commercialisation of the sector. In addition, ways of increased private sector participation, corporatisation, regulatory reform and the use of alternative technologies will be assessed in order to enable efficient and sustainable service delivery.
     
  • Framework for Markets: The Project will contribute to the strengthening of GAM's financial management by preparing it for a credit rating exercise aimed at enabling GAM to access capital markets.
     
  • Demonstration Effect: The Project will contribute to the development of sustainable, EU compliant and well-operated solid waste management structures that facilitate better cost recovery and provide an example away from the current non-economical and environmentally unsustainable practice.

Client Information

MUNICIPALITY OF GREATER AMMAN

Greater Amman Municipality

EBRD Finance Summary

JOD 7,900,000.00

Total Project Cost

JOD 12,044,123.00

Environmental and Social Summary

Tranche II-F component is categorised B under the 2014 Environmental and Social Policy and involves emergency investments for the construction of Cell 6 under Tranche 2 of MR3: GAM Solid Waste Crisis Response Programme (OPID 47981, Board approved in May 2016). The E&S issues and impacts are assessed to be site-specific and readily identified and addressed through appropriate mitigation measures.

The investment will further increase efficiency of solid waste management in Amman. The new cell will be designed to EU standards in line with the requirements of the EU Landfill Directive.

To ensure full compliance with national regulatory requirements and obtain the necessary regulatory permits for projects inside the landfill, an ESIA was completed in December 2018 which covers the whole Al Ghabawi landfill. Environmental and Social Due Diligence ("ESDD") for the Tranche II-F investments into Cell 6 has been carried out by independent external consultants in 2019-2020. The supply and installation of the new gas turbine is expected to increase the existing installed capacity by 1.6 MW. A full ESDD has previously been conducted as part of the original LFG project (OPID 47046) with the respective mitigation measures included in the original project ESAP currently under implementation.

The new landfill Cell 6 will be constructed adjacent to the existing Al Ghabawi landfill cells at the designated site and will not require any additional land acquisition, resettlement or displacement and will not affect any sensitive sites. There are no significant community HSE risks or impacts resulting from the landfill site, as it is located in a remote area and there are no communities within the immediate vicinity of the landfill. While the low permeability of the geological barrier in the project site area is protecting the groundwater from any contamination and the risks are low, the construction of a new cell will need to have adequate lining, gas collection and leachate collection systems to prevent any impacts on the groundwater. Limited air quality impacts are anticipated from Cell 6, although emissions will be controlled and reduced by daily cover of waste and future capping of the cell for collection of the LFG as it has been done for the previous cells. The project is expected to further improve health and safety conditions for workers and communities through further improvement of GAM's EHS management practices.

A comprehensive consolidated ESAP prepared for GAM under previous investments at Al Ghabawi is currently under implementation, and additional action areas and measures for Cell 6 component will be included into the consolidated ESAP for GAM to implement, including preparation of a detailed design for Cell 6 in accordance with tender specifications, GIP and EU Landfill Directive requirements; developing a detailed Odour Management Plan and a Landfill Gas Management Plan; assessing options for leachate treatment and setting up an action plan to proceed with treating the leachate at the treatment plant to be designed in accordance with EU Directives and Best Available Technologies (BAT); further enhancing the environmental monitoring efforts, as well as further update of the existing SEP under implementation, as necessary. Cumulative impacts of multiple existing and potential future projects in Al Ghabawi have also been covered under the ESIA for the nearby planned Al Ghabawi WWTP development and will also be noted and addressed by GAM especially in relation to community grievances related to odour, dust and other nuisances.

As an existing client, GAM continues to improve their internal E&S management systems and practices and building internal E&S capacity with the support from external expert consultants, in line with the agreed E&S commitments on previous transactions. Annual E&S reporting received from GAM in February 2020 and ESD's monitoring visit in October 2019 confirmed noticeable progress made by GAM with help from Eco Consult on the implementation of the original ESAP for Al Ghabawi. At the same time there is a clear need from GAM to take ownership and develop more consistency of its own E&S implementation and monitoring efforts. Furthermore, due to the increased EBRD exposure to GAM in other sector areas beyond solid waste operations, a further effort in developing an overarching corporate ESMS for GAM is required, and a separate TC operation will be initiated shortly to support that.

GAM will continue to provide the Bank with annual E&S reports and updates on the implementation of the ESAP and SEP. The Bank will conduct close monitoring of this Project, including monitoring site visits as and when required. 

Technical Cooperation and Grant Financing

Construction Supervision TC for the amount of EUR 75,000 funded by the EBRD.

Company Contact Information

Mr. Ameen Al Sarayrah
info@ammancity.gov.jo
+962 6-463-6111
+962 6-464-9420
www.ammancity.gov.jo
Building: The Greater Amman Municipality Building Street: Omar Matar Street Area: Ras Al Ain Area P.O. Box: 132 Country: Jordan City: Amman City Suffix: 11118

PSD last updated

25 Jan 2021

Understanding Transition

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

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Environmental and Social Policy (ESP)

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.

Integrity and Compliance

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.

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.

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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