JORDAN WATER SECURITY AND CLIMATE ADAPTATION (EIB-20230145)

Countries
  • Jordan
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • European Investment Bank (EIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jul 18, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Jordan - Ministry of Water and Irrigation
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Water and Sanitation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 490.52 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 450
Converted using 2024-07-18 exchange rate.
Project Cost (USD)
$ 1,090.04 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 1000
Converted using 2024-07-18 exchange rate.
Primary Source

Original disclosure @ EIB website

Updated in EWS Sep 9, 2024

Disclosed by Bank Jul 30, 2024


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the current Results-Based Loan (RBL) will finance small scale investments aiming to reduce Non-Revenue Water (NRW), increase water supply and improve sanitation services throughout Jordan.

The aim is to improve water security and climate adaptation, in line with the Government of Jordan's National Water Strategy, Non-Revenue Water Strategy and Financial Sustainability Roadmap by applying Results-based financing.

The Results Based Loan (RBL) will support the development of water supply infrastructure across several governorates in Jordan in support of the Jordanian Government’s National Water Strategy. The Promoter of this RBL is the Ministry of Water and Irrigation (MWI). A Delivery Unit (DU) in MWI will be overseeing the implementation of the RBL and will plan, supervise, manage, and monitor its implementation. Investments will be implemented in line with relevant national legislation and in accordance with the EIB’s social and environmental standards by four Implementing Agencies: (i) the Water Authority of Jordan (WAJ), (ii) Miyahuna Water Company (MWC) for the central areas, including greater Amman, (iii) Yarmouk Water Company (YWC) in the north, and (iv) Aqaba Water Company (AWC) in the south.

This loan will finance investments in four Results Areas (RAs):
1. Reducing Non-Revenue Water (NRW) across water utilities in Jordan;
2. Increasing sustainable water supply;
3. Enabling operational efficiency; and
4. Increasing service levels of water and sanitation customers across Jordan.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The schemes are expected to have minor negative environmental impacts during construction and no negative residual impacts in the operational phase. The schemes are not likely to have negative impacts on nature conservation areas.

The main social risks identified are related to small to moderate scale civil works proposed under the envelope for reducing physical losses, across the large geographic scope of the Project. These include the rehabilitation of existing distribution pipes and household water connections; the construction of reservoirs; works to replace water pumps within existing water pumping stations or new ones, trunk lines, rehabilitation of wells etc.

The small to moderate scale type of works proposed are likely to cause temporary and limited to occupational and community health and safety impacts. These could include:
• Road safety (traffic accidents), fall at deep excavations, and falling of lifted objects, noise, and dust.
• Traffic public disturbance should be kept at a minimum as construction activities are expected to be short and confined in space.
• Risk of communicable transmittal diseases due to the recruitment of migrant workers. This risk is already taken into account by the country’s existing system related to construction permits and will be addressed within the mitigation measures foreseen for the Project.
• Socio-economic and hygiene impacts from water service disruption, especially if the works are not properly coordinated with stakeholders such as municipalities and utilities.

In addition, rehabilitating household connections has the potential to create low/moderate social tensions or exclusions if areas or neighbourhoods are not selected in an equitable and transparent manner or for the disconnection of illegal connections.

Land acquisition may be required on a temporary or permanent basis, depending on the specific rehabilitation needs. Impacts related to land acquisitions (economic displacement) will be assessed during the implementation phase of each scheme, when detailed designs will be available. Activities triggering physical displacement will not be eligible for financing under the EIB loan.

The potential chance finding of cultural heritage resources during excavation activities is limited to governorates that have rich archaeological heritage sites such as Amman and Jerash.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

A loan under EFSD+ Guarantee.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Aqaba Water Company is a water utility company in Aqaba, Jordan

Miyahuna LLC is a national company fully owned by the Jordanian government, represented by the Water Authority of Jordan.

Yarmouk Water Company is a national limited liability company wholly owned by the Jordan Water Authority.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Aqaba Water Company Client -
- - - - Miyahuna LLC Client -
- - - - Yarmouk Water Company Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No contacts available at the time of disclosure.

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.eib.org/en/infocentre/registers/request-form/request-form-default.htm

ACCOUNTABILITY MECHANISM OF EIB

The EIB Complaints Mechanism is designed to facilitate and handle complaints against the EIB by individuals, organizations or corporations affected by EIB activities. When exercising the right to lodge a complaint against the EIB, any member of the public has access to a two-tier procedure, one internal - the Complaints Mechanism Office - and one external - the European Ombudsman. A complaint can be lodged via a written communication addressed to the Secretary General of the EIB, via email to the dedicated email address: complaints@eib.org, by completing the online complaint form available at the following address: http://www.eib.org/complaints/form via fax or delivered directly to the EIB Complaints Mechanism Division, any EIB local representation office or any EIB staff. For further details, check: http://www.eib.org/attachments/strategies/complaints_mechanism_policy_en.pdf

When dissatisfied with a complaint to the EIB Complaints Mechanism, citizens can then turn towards the European Ombudsman. A memorandum of Understanding has been signed between the EIB and the European Ombudsman establishes that citizens (even outside of the EU if the Ombudsman finds their complaint justified) can turn towards the Ombudsman on issues related to 'maladministration' by the EIB. Note that before going to the Ombudsman, an attempt must be made to resolve the case by contacting the EIB. In addition, the complaint must be made within two years of the date when the facts on which your complaint is based became known to you. You can write to the Ombudsman in any of the languages of the European Union. Additional details, including filing requirements and complaint forms, are available at: http://www.ombudsman.europa.eu/atyourservice/interactiveguide.faces

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