East Zarqa Wastewater

Location:

Jordan

Project number:

47495

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

25 Nov 2015

Status:

Repaying

PSD disclosed:

27 Aug 2015

Translated version of this PSD: Arabic

Project Description

The Bank is providing a loan of up to USD 14.5 million, to be co-financed by an investment grant of USD 5.5 million from the EBRD Special Shareholders Fund, to the Hashemite Kingdom of Jordan, for the construction of a new wastewater pipeline from East Zarqa pumping station to As-Samra Wastewater Treatment Plant (“As-Samra WWTP”). As-Samra WWTP, Jordan’s largest wastewater treatment plant, has been placed under unprecedented strain due to the rapidly increasing wastewater flows caused by the recent refugee influx.

The proposed investment is part of a wider engagement with the Water Authority of Jordan aimed at upgrading Jordan’s wastewater system.

Transition Impact

  • Frameworks for Markets: The project will contribute to capacity building for WAJ, and the water and wastewater sector.
  • Demonstration of Successful Restructuring: The project aims to support the client to implement restructuring measures.
  • The expected transition impact rating is ‘good’.

The Client

Hashemite Kingdom of Jordan

EBRD Finance

Loan of up to USD 14.5 million, to be co-financed by an investment grant of USD 5.5 million from the EBRD Special Shareholders Fund.

Project Cost

Up to USD 20.66 million.

Environmental and social categorisation, impact, and mitigation

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 force main wastewater collector from East Zarqa pumping station to As-Samra Wastewater Treatment Plant (“WWTP”) and rehabilitation of the existing main sewer will allow for collecting growing wastewater flows and transferring them to As-Samra WWTP. The Environmental and Social Due Diligence (“ESDD”) covering both the construction of the new force main wastewater collector and rehabilitation of the existing main sewer has been undertaken by independent consultant.  . 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.

The project is part of a wider programme to improve wastewater collection and treatment in As-Samra. The Bank is also considering other separate 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 has 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 preliminary local environmental impact assessment, including an environmental and social management plan (“ESMP”), has been prepared for the pipeline construction phase 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.

A review of the alignments for the new sewer line and for the existing line showed that the routes will be aligned mostly along the existing road infrastructure  and  will not require any significant land acquisition or resettlement or affect any environmentally sensitive areas or cultural heritage sites. The ESDD showed that some limited temporary adverse E&S impacts are likely to occur during the construction stage of the project and these can be effectively avoided or mitigated by adhering to good international construction practices. The main issues are safety risks associated with open tranche excavation and temporary restriction of access. The project will affect agricultural fields in several locations along the routes and result in limited economic displacement impacts, which will be managed through a Livelihood Restoration Framework / Plan (“LRF/LRP”) compliant with EBRD PR 5. The LRP will need to be implemented before start of construction works.

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 ESAP requires, among others, WAJ and its operator and contractors to: 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 routes; introduce a Chance Finds Procedure for excavation works.

The Bank will monitor the project’s environmental and social performance and compliance with EBRD PRs by reviewing annual reports prepared by the Borrower on environmental and social matters, and implementation of the ESAP. 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 may also undertake monitoring site visits.

Technical Cooperation

The following technical co-operation (TC) assignments are included as part of this project:

Pre-signing

  • Technical and Environmental Due Diligence Review. The cost of this assignment is EUR 29,558, financed by the Bank’s internal resources.
     
  • Technical and Environmental Due Diligence Review Extension. The cost of this assignment is EUR 29,978, financed by the European Union Neighbourhood Investment Facility funded SEMED Fast-Start Fund.
     
  • Procurement and Tender Support. The cost of this assignment is EUR 75,000, financed by the European Union Neighbourhood Investment Facility funded SEMED Fast-Start Fund.

Post-signing

  • Supervision Engineer and Implementation, Environmental and Social and Health and Safety Support to assist WAJ in project supervision, and health and safety and ESAP implementation. The estimated cost of this assignment is up to EUR 450,000, proposed to be financed by a multilateral fund, an international donor or the SSF.

Company Contact

Engineer Iyad Dahiyat
Director, Programme Management Unit

Water Authority of Jordan/Ministry of Water and Irrigation.

Email: Iyad_Dahiyat@mwi.gov.jo
Tel: +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

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.