Amman Electric Bus Project (EBRD-52505)

Countries
  • Jordan
Where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Dec 15, 2020
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Greater Amman Municipality
The holder of the loan, grant, or other investment.
Sectors
  • Transport
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, etc.
Investment Amount (USD)
$ 3.40 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported EUR 2,800,000.00
Converted using 2020-12-15 exchange rate.
Project Cost (USD)
$ 6.81 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Currency conversion note:
Bank reported EUR 5,600,000.00
Converted using 2020-12-15 exchange rate.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Dec 17, 2020

Disclosed by Bank Dec 15, 2020


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Project Description

According to bank provided information, the investment involves the provision of up to EUR 2.8 million (to be available in JOD) unsecured sub-sovereign loan to GAM to finance the purchase of up to 15 new battery electric buses ("BEB"), as a pilot rollout for the first electric bus transport in the city. The project is a follow-on investment of Amman's Green City Action Plan, and is part of a larger fleet expansion project that involves purchasing a total of 151 buses, including 136 diesel Euro V buses in addition to the remaining 15 BEB buses considered herein. The project aims to improve public transport in the city of Amman, while serving as a crucial first step towards transitioning into low-carbon transport infrastructure. Total Project cost is expected to be EUR 5.6 million, which is expected to be co-financed by a Green Climate Fund ("GCF") concessional loan of EUR 2.8 million in addition to the Bank loan of EUR 2.8 million.

PROJECT OBJECTIVES

GAM is seeking to improve its urban transport services and renew its bus fleet through the purchase of up to 151 new buses with related bus depot facilities and ancillary systems. The proposed new bus fleet will serve new routes under the bus network plan developed by GAM. It is intended that the bus fleet will be purchased by GAM and leased to a private sector operator, which will be responsible for the depot facilities and warranty and maintenance obligations for the fleet. The bus operator will be paid through a Public Service Contract ("PSC") with Amman Vision for Transport (the municipal company responsible for transport operations) under a gross-cost arrangement. This purchase of 151 new buses will include 15 e-buses as a pilot project to debut zero-emission public transport vehicles in Amman, in an effort to transition into a low-carbon public transportation system (the "Project"). The Project is expected to have a strong demonstration effect, being the first of its kind in the country, as well as the SEMED region, financed by EBRD. The Project is a follow-on investment from Amman's Green City Action Plan ("GCAP"), developed as part of the City's participation in EBRD Green Cities. The electric bus fleet aligns with actions identified in the GCAP and supports the City to address the GCAP priorities of reducing GHG emissions and air pollution. The Project is also eligible for dedicated concessional funds for Green Cities projects from the Green Climate Fund ("GCF") by promoting electric mobility. The Project will benefit from a concessional loan which will match EBRD funding. The tender for the Project is expected be launched in December 2020. The planned purchase of the new buses is expected to improve the reliability and quality of public transport services for users, as well as significantly reduce GHG and air pollutant emissions from transport through the use of alternative fuels and improved fuel efficiency, in compliance with objectives and commitments of the city. The investment in the new buses will result in a significant reduction in emissions (clean air and GHG related) from the urban bus sector.

Investment Description
  • European Bank for Reconstruction and Development (EBRD)
Contact Information

Hussain Alrubehat
hussain.alrubehat@ammancity.gov.jo 
+96264621179

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request 

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en 

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html