PROJECT NAME As-Samra Wastewater Treatment Plant

LOCATION Jordan

CLIENT Ministry of Water and Irrigation

SCOPE Build, Operate and Transfer a modern plant treating the wastewater of 2.3 million

DURATION 39 Months

DATE OF COMPLETION July 2012

As-Samra Wastewater Treatment Plant

PROJECT DESCRIPTION

Awarded in 2003 through an international competitive bid and completed in 2008, the initial As Samra Wastewater Treatment Plant (Phase 1) was designed to treat the wastewater of 2.3 million- equivalent inhabitants of Amman and the surrounding areas. This modern plant replaced the polluted waste stabilization pond system that was in place and has improved the downstream agricultural areas that rely heavily on treated water for irrigation. What was heavily polluted a few years ago is now becoming one of the cleanest rivers in Jordan! In 2009, facing increasing growth in population, the government of Jordan, represented by the Ministry of Water and Irrigation (MWI), decided to expand the plant. The 25-year build, operate and transfer (BOT) contract for the expansion of the As- Samra WWTP entered into force on 18 July 2012. The expanded plant is expected to meet the wastewater treatment needs of 3.5 million-equivalent inhabitants of the Amman and Zarqa areas through 2025.

This project significantly improves water resources management for one of the most water-deprived countries in the world, providing an increased supply of high quality treated wastewater for agricultural use at an affordable price, while freeing up fresh water for other uses and implementing sustainable solutions in a region with multiple needs for drinking water and sanitation infrastructures, given the scarcity of the resource.

MORE INFORMATION

An Innovative Financing
A Template for Viability Gap Financing
This plant is the first wastewater treatment facility in the Middle East to have used a combination of private, local government and donor financing. Donor institutions involved in the financing included the USAID and MCC. This project was partly financed by local banks. The loan has a tenor of 13 years extendible to 20. This tenor marks the longest maturity that Jordanian banks offered to date for a Dinar-denominated limited-recourse loan. By bringing down the capital costs, the grant funding enabled the project to be financially viable, thus benefiting the government and local rate-payers, without subsidizing the private sector. Closing the financing of the expansion proved the feasibility and demonstrated the significant benefits of combining private sector financing with viability-gap grant funding.

A 20-year commercial loan, the longest maturity in Jordan to date.
A JOD denominated loan – no exchange risk for the client.
The strong appetite of local banks for robust infrastructure projects in local currency.