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    Reference: 20180058
    Release date: 5 November 2018

    Promoter – Financial Intermediary

    MINISTRY OF WATER AND IRRIGATION - HASHEMITE KINGDOM OF JORDAN

    Location

    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

    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).

    Related tags

    Jordan Water, sewerage