Release date: 23 May 2019
Promoter – Financial Intermediary
CITIES AND VILLAGES DEVELOPMENT BANKLocation
Description
The project, structured as a framework loan, consists in the implementation of energy efficiency improvements targeting Jordanian municipal buildings and infrastructure throughout Jordan with 100 municipalities as targeted beneficiaries.
Objectives
The project will notably include works for the refurbishment and energy efficiency upgrade of public buildings, the installation of solar panels on such buildings and public lighting investments (e.g. replacement of existing lamps by less energy consuming equivalents). The project aims at addressing several needs which became even more acute following the Syria crisis (which had a severe impact on the municipal services being provided in Jordan). There is increased pressure on the already insufficient services to meet demands from both host communities and refugee populations. The project will bring substantial benefits in terms of enhanced social infrastructure, regional development, and positive environmental impact, especially in municipalities remote from economic centers. The project will contribute to reducing the cost of electricity for municipalities by implementing renewable energy and energy efficiency sub-projects. It will allow municipalities to reallocate those energy savings to other urgent priorities under their responsibility (e.g. health, education). In that respect, the project is a high priority for the Jordanian government and is fully in line with the EU and EIB priorities and objectives in the country.
Sector(s)
- Energy - Electricity, gas, steam and air conditioning supply
Under ELM Guarantee
This operation is covered by the ELM Guarantee.
Proposed EIB finance (Approximate amount)
EUR 45 million
Total cost (Approximate amount)
EUR 114 million
Environmental aspects
The project will bring substantial benefits in terms of enhanced social infrastructure, regional development, and positive environmental impact, by generating energy savings with energy efficiency and renewable energy investments throughout Jordan. It will contribute to the objective set by the current EU-Jordan Partnership Priorities and Compact to develop energy efficiency and renewable energy investments to attain reduction of energy use by 2020 by 20% and improve contribution of renewables in electricity general to 15%. The project is fully in line with EIB's objectives under the 2014-2020 External Lending Mandate (ELM), specifically the 2014-2020 ELM Climate Strategy which calls for the development of energy efficiency and renewal energy investments.
Procurement
The Bank will require the promoter to ensure that implementation of the Project will be undertaken in accordance with the Bank's Guide to Procurement. The operation is targeting the public sector and therefore the final beneficiaries are assessed as public companies for procurement purposes. In any case, the Bank will require the Intermediary institution to take all the requisite measures to ensure that any procurement procedures carried out by the final beneficiaries for the sub-projects that the Bank finances are in accordance with EIB Guide to Procurement.
Status
Signed - 17/10/2019
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).