Ain Ghazal Wastewater Project

Location:

Jordan

Project number:

47767

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Approval date:

22 Nov 2016

Status:

Signed

PSD disclosed:

23 Sep 2016

Translated version of this PSD: Arabic

Project Description

A financing package to the Hashemite Kingdom of Jordan to be provided as follows:

  • Tranche 1 (committed): Up to USD 25.3 million sovereign loan, to be co-financed by an investment grant of up to USD 22.7 million from an international donor, the World Bank's Concessional Financing Facility, and/or the EBRD's Shareholders Special Fund ("SSF"), to construct a new 30.4 km wastewater conveyor from the Ain-Ghazal Treatment Plant ("AGTP") to the As-Samra Wastewater Treatment Plant ("As-Samra WWTP") for the transportation of the mechanically pre-treated wastewater from AGTP to As-Samra WWTP to undergo further biological treatment.
     
  • Tranche 2 (uncommitted): Up to USD 17 million sovereign loan, to be co-financed by an investment grant of up to USD 10 million from international donors, to be used for the expansion and refurbishment of the existing AGTP facilities for mechanical pre-treatment of the wastewater before its transportation to As-Samra WWTP through the new conveyor.

The proposed Project is part of the wider engagement with the Water Authority of Jordan ("WAJ") aimed at upgrading Jordan's wastewater system.

Project Objectives

The proposed Project is part of the EBRD's Refugee Crisis Response Programme and forms part of  wider engagement with WAJ aimed at upgrading Jordan's wastewater system and increasing its esilience. The resettlement of a significant number of Syrian refugees within the catchment area of the AGTP and the As-Samra WWTP placed an unprecedented strain on the associated wastewater network. The proposed investment will help avoid potential serious pollution of the environment.

Transition Impact

Private Sector Participation and Demonstration Effect: The Bank will seek the introduction of operations and maintenance contracts with the private sector to ensure the sustainability of water and wastewater services in Jordan.

Framework for Markets and Improvements in Governance: The Bank will seek to engage the private sector to decrease non-revenue water in order to increase cost-recovery of services and promote financial sustainability of operations.

Client Information

WATER AUTHORITY OF JORDAN

EBRD Finance Summary

USD 42,300,000.00

Up to USD 42.3 million.

Total Project Cost

USD 75,000,000.00

Up to USD 75 million.

Environmental and Social Summary

The Project has been categorised B under the 2014 Environmental and Social Policy.  Initial Environmental and Social Examination, including a site visit by the Bank's environmental and social specialists, showed that the Project will have limited environmental and social ("E&S") risks and impacts. The construction of a new 30.4 kilometres wastewater collector from Ain Ghazal treatment plant (AGTP) to As-Samra Wastewater Treatment Plant ("WWTP") and the rehabilitation of the selected AGTP’s pre-treatment facilities to improve odour management will allow for collecting growing wastewater flows and transferring them to As-Samra WWTP. Following the IESE, Environmental and Social Due Diligence ("ESDD") covering both the construction of the new wastewater collector and rehabilitation of the existing AGTP pre-treatment facilities was undertaken by independent consultants.  The ESDD concluded that the project will result in significant environmental and public health benefits and that the project is associated with limited E&S risks and impacts during the construction stage of the project and these can be effectively avoided or mitigated by adhering to good international construction practices.

The project is part of a wider programme to improve wastewater collection and treatment in As-Samra. The Bank is also considering other projects within the same programme, including a project to upgrade the As-Samra wastewater treatment plant and another to improve the management of the residual sludge from the As-Samra WWTP.

ESDD confirmed that WAJ's existing operations and practices generally comply with EBRD Performance Requirements ("PRs"). WAJ facilities operator has a well developed environmental policy and operational procedures and its environmental management and occupational health and safety management systems are certified to ISO 14001 and OHSAS 18001 standards, respectively.

A review of the alignment for the new sewer line showed that the route will be aligned mostly along the existing road infrastructure and the right-of-way for the existing pipeline and will not affect any environmentally sensitive areas or cultural heritage sites. Some land acquisition may be required but this will not be confirmed until detailed designs have been prepared.  The project may affect agricultural fields in several locations along the routes and therefore may cause some economic displacement impacts. This will be managed through the preparation and implementation of a Livelihood Restoration Plan ("LRP") compliant with EBRD PR 5. The LRP will need to be implemented before start of construction works.

Once the final design has been prepared, a local environmental impact assessment, including an environmental and social management plan ("ESMP"), will need to be prepared for the pipeline construction to obtain the necessary local approvals and the environmental permit prior to project execution as per the Jordanian Environmental Impact Assessment Regulation.  WAJ will include the ESMP requirements into the contract documents between WAJ and the contractor and the operator.  SPC (Samra Project Company) as the operator of the As-Samra WWTP will also be responsible for the operation and management of the new pipeline from Ain Ghazal and for the implementation of the respective ESMP requirements.

An Environmental and Social Action Plan ("ESAP") and a Stakeholder Engagement Plan ("SEP") have been prepared for the project to mitigate the identified risks and impacts and to structure the Project to meet EBRD's PRs. The main actions are focussed on mitigating safety risks associated with open tranche excavation and temporary restriction of access during the construction works. The ESAP requires, among others, WAJ and its operator  and contractors to:  commission  a local  EIA to obtain the necessary  local approvals and the environmental permit prior to any construction activities;  incorporate relevant  E&S provisions  in the construction contracts; develop and implement safe construction waste management  and disposal procedures; enforce implementation of excavation/trench safety guidelines  by the workers on construction  sites; implement public/community safety arrangements (e.g. safety fencing, warning signs) during excavation  and construction works; develop and implement a construction-specific traffic and road safety plan;  prepare and implement a Livelihood  Restoration  Plan for addressing  economic displacement along the pipeline route;  introduce a Chance Finds Procedure for excavation  works.

The Bank will monitor the project's environmental and social performance and compliance with the ESAP and the EBRD PRs by reviewing annual reports prepared by the Borrower on environmental and social matters. The TC funded tender preparation and construction supervision consultants will also monitor day-to-day E&S performance and issues and provide assistance in the implementation of the ESAP. The Bank will also undertake monitoring site visits, need arising.

Technical Cooperation

Pre-signing

Technical and Environmental Review and Due Diligence: The cost of this assignment is up to USD 446,000, proposed to be financed by an international bilateral donor, a multi-lateral donor fund or the SSF.

Post-signing

Supervision Engineer and Implementation Support, including Environmental and Social and Health and Safety Support: The estimated cost of this assignment is up to USD 1,650,000, to be financed by the proceeds of the EBRD loan.

Company Contact Information

Engineer Iyad Dahiyat, Secretary General-Ministry of Water and Irrigation, Director of Programme
Management Unit-Water Authority of Jordan
Iyad_Dahiyat@mwi.gov.jo
+962 6 5652262

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

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Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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