MR3: GAM Solid Waste Crisis Response - Cell 6 (EBRD-52515)

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
Jan 29, 2021
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
  • Climate and Environment
  • Water and Sanitation
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 11.14 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 7.9
Converted using 2021-01-29 exchange rate.
Project Cost (USD)
$ 17.49 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 12.4
Converted using 2021-01-29 exchange rate.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Feb 9, 2021

Disclosed by Bank Jan 25, 2021


Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description

On 24 November 2016, the Bank signed a project with the City of Amman to finance priority solid waste investments in Amman (the "Project"). The financing is structured in two tranches:

 

Tranche I, consisting of JOD 40 million, committed at signing and used to refinance GAM's existing debt to release funds for a comprehensive solid waste crisis response programme. Tranche 1 is co-financed by a GBP 5 million investment grant by an international donor for urgently needed solid waste investments.

Tranche II, consisting of up to EUR 50 million loan from EBRD, remains uncommitted and will finance a series of investments aimed at addressing the City's urgent solid waste needs. Tranche II components are expected to be co-financed by capex grants of up to 50 per cent, provided by international donor(s) and the Bank through its Shareholder Special Fund ("SSF"). To date (June 2020 update), the Bank has financed 5 sub-projects under this Tranche as follows:

  1. Tranche II-A:  signed on 10 May 2017, for the construction of a fifth cell at Al-Ghabawi Landfill and its associated leachate lagoons. The component is financed by a JOD 3.25 million EBRD loan and a GBP 4.25 investment grant.
  2. Tranche II-B: signed on 9 May 2018, to finance the purchases of 75 compactors and other equipment to be used by GAM in solid waste operations. The component is financed by a JOD 9.9 million EBRD loan and two investment grants of GBP 5.63 million and USD 7.4 million respectively.
  3. Tranche II-C: signed on 29 November 2018, to finance the capping of cell 4 wells, drilling and installation of the Landfill Gas Recovery ("LFG") collection system, and connecting it to the existing LFG system for cells 1,2 and 3. This component is financed by a JOD 3.2 million EBRD loan and a EUR 3.8 million grant.
  4. Tranche II-D: signed on 19 December 2019 , to finance the upgrade and rehabilitation of Al-Shaer waste transfer station. This component is financed by a JOD 2.5 million EBRD loan and a grant of USD 3.5 million
  5. Tranche II-E: signed on 19 December 2019 , to finance the purchase of 25 sweeper vehicles for use in solid waste operations in Amman. This component is financed by a JOD 2.4 million and a grant of EUR 3.0 million.

The Bank is now looking to sign Tranche II-F, which involves financing the construction of Cell number 6 at Al-Ghabawi landfill and the supply and installation of a new gas turbine, which will be connected to the existing landfill gas recovery system at the landfill.  The Project will be financed by an EBRD loan of JOD 7.9 million accompanied by a EUR 5.0 million grant from the European Union.

PROJECT OBJECTIVES

The financing package forms part of the EBRD's Refugee Crisis Response Programme. GAM, which hosts around 30 per cent of the Syrian refugee population in Jordan, is largely affected by the on-going refugee influx. This places a heavy strain on Amman's municipal infrastructure and in particular on the solid waste management system. There is an urgent need to strengthen GAM's resilience as well as to optimise its financing, and Tranche I will allow GAM to liberate urgently needed funds to enable it to deal with the on-going challenges.

Tranche II of the investment package is targeted towards financing specific investments in the solid waste sector to mitigate the effects of the refugee influx and provide more sustainable and long-term solutions. These investments will be assessed on a project-by-project basis and are expected to be co-financed by investment grants made available by other partners, including, but not limited to, the European Union.

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

Mr. Ameen Al Sarayrah
info@ammancity.gov.jo 
+962 6-463-6111
+962 6-464-9420
www.ammancity.gov.jo 
Building: The Greater Amman Municipality Building Street: Omar Matar Street Area: Ras Al Ain Area P.O. Box: 132 Country: Jordan City: Amman City Suffix: 11118

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