- Implementation Support Agency (ISA): European Bank for Reconstruction and Development (EBRD)
- Total project financing: $63.10 million
- Funding from GCFF: $2.50 million
- GCFF Financing Approval Date: 04/20/2017
- Project Closing Date: 06/30/2024
- % Disbursed: 0%
- Status: Under implementation
About the project
The project agreements (Loan, GCFF and EBRD SSF Grants) between EBRD, Ministry of Planning and International Cooperation and Ministry of Water and Irrigation (MWI) were signed on 20 December 2017. The EU MADAD Grant was signed on 10 May 2018. EBRD-mobilized consultants completed a review of the Water Authority Jordan’s (WAJ) technical studies for the project in mid-2017 and carried out environmental and social due diligence. The review concluded in proposing a revised technical solution to WAJ, which was accepted, and consequently the project cost increasing to EUR 56.1 million (assuming Fx rates as of December 22, 2022). The project was declared effective on 30 April 2019, following the achievement of a number of critical Conditions Precedent, including the mobilization of the technical assistance to support WAJ through the procurement process.
Project Implementation Status
(As of December 31, 2022)
- The consultants (Engicon) supporting WAJ to tender and implement the project were contracted on 10 February 2019.
- The results of the procurement were concluded in June 2020, where 3 out of the 5 lots were awarded to Hassan Allam Construction (the contractor), and the remaining two were decided to be retendered. It was found that the total original budgeted amount (EUR 56.1 million), is not sufficient for the 5 lots due to: i) USD/EUR exchange rate depreciated from 0.85 in October 2017 to 1.01 as of 6 October 2022; ii) the price of corrugated high-density polyethylene pipes be increased and also the price of manholes is also estimated to have increased by 35 per cent; and iii) coverage of the wastewater networks was increased to cover increasing households in the selected towns.
- In addition, the Ministry of Water and Irrigation (MWI) is currently envisaging a new wastewater treatment plant (WWTP), to be connected to the wastewater networks financed by this Project and would serve the area of West Irbid. However, it was later decided to consider the new WWTP as a separate project and consider its financing separately from the financing available for this project.
- To fill the funding gap on this project, the GoJ has approached EBRD to request additional loan financing of circa EUR 30 million, in order ensure all the envisaged networks serving the 15 villages of the catchment area would be constructed and the households connected. MWI has currently requested from the Government’s Credit Committee the preliminary approvals for this additional financing of EUR 30 million. As soon as the Credit Committee approves this additional financing, the MWI would engage actively with EBRD to seek the needed internal approvals from EBRD on this financing. The structure of the financing could be split into tranches; however, this would need to be further discussed with MWI after the Credit Committee approval is granted. Tranching could be needed due to budgetary controls and available borrowing limits in 2023, to be later confirmed
- The Bank’s consultant (Engicon), supporting the inclusive procurement process, has started to design the structure of the process in Jordan through several training exercises and outreach to potential partners, this will enable the local population to benefit from not only first-time wastewater services but also employment opportunities.
- The project’s progress currently stands at 6.5%, consisting of the completion of Contractor’s engineering design work and preparatory work for excavation, the production of the final design plans, and the issuance of excavation permits by the relevant municipalities in the area. The contractor shipped its construction material and pipes through the Aqaba Port, and the material is currently onsite. It is expected that the excavation and installation work to pick up quickly in 2023, especially that the excavation permits are issued, the preconstruction work is completed, and the material is on site.