| Project Detail |
Project Description
On 24 November 2016, the Bank signed a project with the City of Amman to finance priority solid waste investments in Amman (the "Project"). The financing is structured in two tranches:
Tranche I, consisting of JOD 40 million, committed at signing and used to refinance GAMs existing debt to release funds for a comprehensive solid waste crisis response programme. Tranche 1 is co-financed by a GBP 5 million investment grant by an international donor for urgently needed solid waste investments.
Tranche II, consisting of up to EUR 50 million loan from EBRD, remains uncommitted and will finance a series of investments aimed at addressing the Citys urgent solid waste needs. Tranche II components are expected to be co-financed by capex grants of up to 50 per cent, provided by international donor(s) and the Bank through its Shareholder Special Fund ("SSF"). To date (June 2020 update), the Bank has financed 5 sub-projects under this Tranche as follows:
Tranche II-A: signed on 10 May 2017, for the construction of a fifth cell at Al-Ghabawi Landfill and its associated leachate lagoons. The component is financed by a JOD 3.25 million EBRD loan and a GBP 4.25 investment grant.
Tranche II-B: signed on 9 May 2018, to finance the purchases of 75 compactors and other equipment to be used by GAM in solid waste operations. The component is financed by a JOD 9.9 million EBRD loan and two investment grants of GBP 5.63 million and USD 7.4 million respectively.
Tranche II-C: signed on 29 November 2018, to finance the capping of cell 4 wells, drilling and installation of the Landfill Gas Recovery ("LFG") collection system, and connecting it to the existing LFG system for cells 1,2 and 3. This component is financed by a JOD 3.2 million EBRD loan and a EUR 3.8 million grant.
Tranche II-D: signed on 19 December 2019 , to finance the upgrade and rehabilitation of Al-Shaer waste transfer station. This component is financed by a JOD 2.5 million EBRD loan and a grant of USD 3.5 million
Tranche II-E: signed on 19 December 2019 , to finance the purchase of 25 sweeper vehicles for use in solid waste operations in Amman. This component is financed by a JOD 2.4 million and a grant of EUR 3.0 million.
The Bank is now looking to sign Tranche II-F, which involves financing the construction of Cell number 6 at Al-Ghabawi landfill and the supply and installation of a new gas turbine, which will be connected to the existing landfill gas recovery system at the landfill. The Project will be financed by an EBRD loan of JOD 7.9 million accompanied by a EUR 5.0 million grant from the European Union.
Project Objectives
The financing package forms part of the EBRDs Refugee Crisis Response Programme. GAM, which hosts around 30 per cent of the Syrian refugee population in Jordan, is largely affected by the on-going refugee influx. This places a heavy strain on Ammans municipal infrastructure and in particular on the solid waste management system. There is an urgent need to strengthen GAMs resilience as well as to optimise its financing, and Tranche I will allow GAM to liberate urgently needed funds to enable it to deal with the on-going challenges.
Tranche II of the investment package is targeted towards financing specific investments in the solid waste sector to mitigate the effects of the refugee influx and provide more sustainable and long-term solutions. These investments will be assessed on a project-by-project basis and are expected to be co-financed by investment grants made available by other partners, including, but not limited to, the European Union. |
