GAM Solid Waste Project

Location:

Jordan

Project number:

47046

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Approval date:

25 Mar 2015

Status:

Repaying

PSD disclosed:

07 Jan 2015

Translated version of this PSD: Arabic

Project description:

Project description:
The Bank is considering up to USD 18 million loan to the Greater Amman Municipality (“GAM”), for the construction of a landfill gas recovery (“LFG”) system at the Al Ghabawi landfill site of Amman under a design, build, and operate (“DBO”) contract.
 
The proposed investment, which comprises the installation of LFG recovery system on cells 1 & 3, generators and connection to the grid as well as leachate treatment facilities, will enable GAM to complete the critical investments designed to improve the quality of the service and environmental standards in Amman. The population of GAM is expected to more than double by 2025 due to a combination of high population growth and rapid refugee influx putting an ever increasing stress on the provision of already strained municipal services. Therefore, GAM needs to take prompt measures to ensure an adequate provision of basic services, including solid waste management services.

Transition impact:

  • Framework for markets and institutional building: The Project will help commercialisation and restructuring of the sector in Jordan.
     
  • New standards of solid waste management and energy efficiency: The Project will facilitate development of a modern type of waste management and waste-to-energy production. It can serve as an example for other un-managed landfill areas in Jordan. The biogas utilisation will result in less emission of the power generation sector in Jordan and will reduce the dependency on imported electricity.
     
  • Private sector participation and demonstration effect of new processes: The gas extraction was tendered as DBO contract with private sector responsible for design, implementation, operation and maintenance. This is expected to have a significant demonstration effect to other municipalities in the country.
     
  • The expected transition impact rating is ‘good’.  

The client:

Greater Amman Municipality, Jordan.

EBRD finance:

Up to USD 13 million senior loan, to be co-financed by an up to USD 5 million loan funded by the Green Energy Special Fund (“GESF”) administered by the Bank.

Total project cost:

USD 30.2 million (GAM contribution of USD 10 million).

Environmental impact:

Categorised “B” in accordance with the 2008 Environmental and Social Policy, following an Initial Environmental and Social Examination (“IESE”). The IESE was carried out by environmental and social specialists in October 2014 and it did not identify any significant adverse environmental or social impacts or risks associated with the proposed landfill gas (“LFG”) recovery system investments at the existing Al Ghabawi landfill. Specifically, no new land acquisition or physical resettlement would be required for the project. An independent consultant firm was then commissioned with TC funds to undertake the Environmental and Social Due Diligence (“ESDD”) of the project, consisting of an environmental and social (“E&S”) analysis of the proposed LFG recovery investment and the environmental and social review of the associated existing landfill facilities and operations.

The ESDD showed that the project which comprises the installation of LFG recovery system on cells 1 & 3, generators and connection to the grid as well as leachate treatment facilities, would result in significant E&S benefits. The key benefits include greenhouse gas (“GHG”) emission reduction of nearly 150,000 tonnes of CO2-equivalent annually, reduction of the risk of landfill fires, prevention of odours and improvements to overall public health and safety conditions at and in the vicinity of the landfill.

The ESDD identified that a number of major improvements in GAM’s management systems and capacity would be necessary to address E&S risks at the existing landfill and other waste management facilities and operations. The key risk issues are associated with the past and present operations and include leachate running off the site, waste disposal on unlined sections of the landfill, identified instability and underground fires, absence of adequate environmental monitoring systems, inadequate control of access to the landfill, and poor occupational health and safety practices and hygiene standards at GAM facilities and poor transportation/road safety practices.

The ESDD observed waste pickers, some of whom are underage as well as children of the landfill workers on the currently active landfill cell, and a specific waste picker study was carried out to assess the situation. The study confirmed that there are at a minimum 30 waste pickers who rely on waste picking for their livelihood and who may lose this due to the project related activities. Therefore, a Livelihood Restoration Framework and Plan (“LRF/LRP”) will need to be prepared for those individuals who are dependent on the waste picking. The waste pickers present on site represent two groups: (i) an organised group (minority) collecting ravaged goods such as outdated food stuffs to resell, and (ii) a group of individuals (majority) that depend either partly or entirely on waste picking for their livelihood. The LRF, followed by a LRP, will need to be prepared by the consultants in consultation with GAM and implemented with assistance of the project implementation support consultants. In addition, GAM will be required to review and upgrade their procedure for depositing and covering freshly delivered waste at the active landfill cell to prevent associated health and safety/security and food safety risks. GAM will also need to improve overall site safety and security and entry/fence control to the site. Enforcing discipline and introducing a system of incentives for GAM staff working on site will be key to preventing alleged assistance to waste pickers’ access, reducing health and safety risks for site workers and waste pickers, and preventing the reported access of children to the site.

A comprehensive Environmental and Social Action Plan (“ESAP”) has been developed and agreed in principle with the GAM to address the identified deficiencies and associated risks in line with good international practice. In addition to the measures ensuring the project is implemented in compliance with the Bank’s Performance Requirements (“PRs”), the ESAP includes mitigation measures covering the Al Ghabawi landfill site, transportation of waste to the landfill site and the East Amman waste transfer station. The key corrective actions include immediate measures required to be implemented by GAM at the main landfill site in order to address key environment, health, safety and social (“EHSS”) issues and risks, and a set of longer term actions for achieving compliance with the EBRD PRs during implementation of the project. These include, for example, requirements for GAM to: strengthen overall EHSS management on site through bringing in new senior management and external advisors who are experienced in landfill management to implement health & safety, environmental and access control systems and actions; improve occupational health and safety and welfare practices and implement industrial hygiene procedures for workers; carry out basic environmental monitoring at the landfill for soil, leachate quality and groundwater parameters to establish pre-investment baseline, prepare and implement an Environmental Monitoring Plan; implement leachate management improvements to prevent leachate running off-site and future contamination; investigate cell 3 stability and fire issues before LFG installation works; review explosion risk management and fire safety procedures and enforce their implementation.

Preparation and implementation of the LRF/LRP, and implementation of key mitigation measures through introducing on-site management/authority with experienced advisors in EHSS and landfill management is required as priority before the start of any project activities.

In order to improve GAM's E&S management and controls, a post-signing Technical Cooperation (TC) package has been proposed which would support the capacity of a project implementation unit (PIU), among other measures. Regular groundwater monitoring required by the EU Landfill Directive may also need to be funded through TC funds.

GAM will provide the Bank with annual environmental and social reports, including updates on the implementation of the ESAP, environmental monitoring and SEP. The Bank will conduct close monitoring of this Project, including monitoring site visits as and when required.
 
A non-technical summary of E&S issues is attached in English and Arabic, and the stakeholder engagement plan is also attached in English and Arabic. Both the non-technical summary of E&S issues and the stakeholder engagement plan are further disclosed on the Client’s website in Arabic and English.

Technical cooperation:

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

Pre-signing
  • Environmental and social due diligence. USD 80,000, financed by the EC’s SEMED Project Preparation Framework – NIF Fund. Extended to include the Waste pickers Survey/Assessment, USD 25,000, financed by Bank resources.
     
  • Feasibility Study update. USD 80,000, financed by the EC’s SEMED Project Preparation Framework – NIF Fund.
Post-signing
 
  • Divestment of Solid Waste Services and Corporate Development and Governance Assistance to assist GAM with: the creation of a new solid waste management company to be fully owned by the City; the preparation of the Public Service Contract; and the preparation and implementation of a Corporate Governance Action Plan for both GAM and a newly created solid waste
    company. USD 950,000, proposed to be financed by an international donor.
     
  • Supervision Engineer and Implementation, Environmental and Social and Health and Safety Support to assist GAM in project supervision, and health and safety and ESAP implementation. USD 1.1 million, proposed to be financed by an international donor.
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