NORTHEAST RAMALLAH WASTEWATER

Promoter – Financial Intermediary

PALESTINIAN WATER AUTHORITY - PALESTINIAN NATIONAL AUTHORITY

Location

• Palestine*

Description

The project will enhance wastewater collection and treatment services in an area located northeast of Ramallah, in Palestine. In detail, it includes the following main components: (i) a new wastewater collection system for 14 villages/municipalities in the project area (ii) a new regional wastewater treatment plant in line with EU standards (iii) trunk lines leading to the wastewater treatment plant (iv) solar photovoltaic panels to contribute to the wastewater treatment plant energy needs (v) reuse scheme.

Additionality and Impact

The project foresees the provision of a wastewater collection and treatment system for northeast Ramallah, in Palestine. Investments in sanitation infrastructure generate positive externalities through avoided pollution of the environment, surface and ground water. Therefore, the operation will bring substantial benefits to the population residing in the project area in terms of: (i) increasing access to safely managed sanitation services; (ii) environmental protection and depollution; (iii) improving public health, by protecting surface/underground water quality and reducing pollution; (iv) climate action thanks to wastewater reuse and sustainable water resources management in the context of water scarcity and the possible generation of renewable energy from solar PVs; (v) broadly speaking, promoting sustainable economic development, by contributing to the improvement of economic prospects and livelihoods of farmers in the area. Addressing these externalities and the resulting market failures thus contributes to achieving the EU, EIB's and national objectives of environmental protection and natural resource efficiency. Additionally, the project supports various sustainable development goals, in particular, but not limited to, contributing to clean water and sanitation, good health and wellbeing, and clean and affordable energy.

The long maturity of the EIB loan, its concessional financial terms with expected mobilization of a grant from the EU-Neighbourhood Investment Platform (EU NIP) are of high value to the Borrower and the project. Additionally, the long tenor, flexible terms of drawdowns adjusted to the needs of the project and advantageous financial terms will increase the financial flexibility and investment capacity. The Bank's contribution will therefore facilitate the completion of the project on favourable terms and in a timely manner.

Objectives

The aim is to improve the current services, since less than 20% of the population in the project area is connected to a sewage collection system. In addition, even where sewage is collected, no treatment is applied, with wastewater being discharged to wadis or open channels, hence contaminating both surface/ground water as well as soil.

Sector(s)

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

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

EUR 35 million

Total cost (Approximate amount)

EUR 59 million

Environmental aspects

The project will have a positive impact through: (i) increased access to safely managed sanitation services for the local population (ii) environmental protection and depollution adaptation (iii) reduction of greenhouse gas emissions through energy savings due to optimised, state-of-the-art wastewater treatment processes as well as solar energy (iii) adaptation to climate change impacts by potentially providing water for re-use in irrigation from the treated effluent and (iv) improved environmental and public health. Inside the EU, the project components would be categorised under Annex I of the Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by the Directive 2014/52/EU. The compliance with principles of relevant environmental EU legislation and EIB Environmental & Social Standards as well as climate change aspects will be further examined during appraisal.

Procurement

The promoter (as an implementing agency) will have to follow the project procurement process according to the EIB's Guide to Procurement and the Palestinian Procurement Law.

Status

Signed - 10/01/2024