DEIR ALLA WATER SUPPLY AND SANITATION

Promoter – Financial Intermediary

MINISTRY OF WATER AND IRRIGATION - HASHEMITE KINGDOM OF JORDAN

Location

• Jordan

Description

The project will improve the existing water supply systems of the Deir Alla and Al Karameh districts in the Jordan Valley. It will also provide for the first time a centralised wastewater collection and treatment system for Deir Alla.

Objectives

The overall long-term objectives of the project are to contribute to: (i) Improvement of potable water quality in the project area; (ii) Mitigating climate change impact by minimising water losses through leakages and thus a reduction of non-revenue water; (iii) Reduced energy consumption in the water supply system through increased energy efficiency and reduced leakages of the water supply system; (iv) Improvement of the groundwater quality; (v) Improvement in security of water supply for agriculture by providing an additional source of water and thus mitigating climate change impact; (vi) Job creation, during construction and operation, in one of the poorest areas of Jordan; and (vii) Institutional strengthening of the beneficiary. The project is a high priority for the Jordanian government under the National Water Strategy 2016-2025, and is fully in line with EU-Jordan Partnership Priorities, especially the objectives of fostering Growth and Job Opportunities. The project is fully in line with EIB's objectives under the External Lending Mandate 2014-2020, specifically the development of social and economic infrastructure, as well as the Bank's recently adopted Water Sector Lending Orientation. Finally, the project is also in line with UN Sustainable Development Goals #6, which calls for ensuring availability and sustainable management of water and sanitation for all and # 11 (make cities and human settlements inclusive, safe, resilient and sustainable).

Comments

Total financing for the project amounts EUR 81m, consisting of about EUR 65m of EIB loan and about EUR 16m of a an Economic Resilience Initiative (ERI) investment grant.

Sector(s)

• Water, sewerage - Water supply; sewerage, waste management and remediation activities

Under ELM Guarantee

This operation is covered by the ELM Guarantee.

Proposed EIB finance (Approximate amount)

EUR 81 million

Total cost (Approximate amount)

EUR 97 million

Environmental aspects

The project will have a positive impact on public health and the environment by reducing the discharge of untreated waste water to the Jordan Valley. Inside the EU, the project components would be categorised under Annex II and therefore would be subject to environmental screening to define if an Environmental Impact Assessment (EIA) would be required according to the relevant competent authority. Climate change aspects will be examined during the appraisal. The Bank will assess the social aspects of the project during appraisal to ensure adherence to its social standards.

Procurement

The promoter will have to ensure that implementation of the project will be done in accordance with EIB's Guide to Procurement.

Status

Signed - 5/03/2019