Jordan West Irbid Wastewater Project

Project Implementation Status

The project agreements (Loan, GCFF and EBRD SSF Grants) between EBRD, Ministry of Planning and International Cooperation and Ministry of Water and Irrigation (MWI) were signed on 20 December 2017. The EU MADAD Grant was signed on 10 May 2018.

• EBRD-mobilised consultants completed a review of the Water Authority Jordan’s (WAJ) technical studies for the project in mid-2017 and carried out environmental and social due diligence.
• The review concluded by proposing a revised technical solution to WAJ, which was accepted, and consequently the project cost increased to c.EUR 56.1 million. The financing of the project is now as follows: EBRD loan EUR 25 million; GCFF USD 2.5 million; EU MADAD grant EUR 19.6 million; and EBRD SSF EUR 5.9 million.
• The project was declared effective on 30 April 2019, following the achievement of a number of critical Conditions Precedent, including the mobilization of the technical assistance to support WAJ through the procurement process.
• The consultants (Engicon) supporting WAJ to tender and implement the project were contracted on 10 February 2019.
• The results of the procurement were concluded in June 2020, with 3 out of the 5 lots awarded to Hassan Allam Construction
  (the contractor), and the decision was taken to retender the remaining two. It was found that the total original budgeted
  amount (EUR 56.1 million), is not sufficient for the 5 lots due to: i) USD/EUR exchange rate depreciation from 0.85 in
  October 2017 to 1.01 as of 6 October 2022; ii) the price of corrugated high-density polyethylene pipes increased and the
  price of manholes is also estimated to have increased by 35 per cent; and iii) coverage of the wastewater networks was
  increased to cover an increased number of households in the selected towns compared to the original plan.
• In addition, the Ministry of Water and Irrigation (MWI) is currently envisaging a new wastewater treatment plant (WWTP),
  to be connected to the wastewater networks financed by this Project, which would serve the area of West Irbid. However, it
  was later decided to consider the new WWTP as a separate project and consider its financing separately from the financing
  available for this project.
• To fill the funding gap on this project, the Government of Jordan has approached EBRD to request additional loan financing
  of circa USD 30 million, in order ensure all the envisaged networks serving the 15 villages of the catchment area would be
  constructed and the households connected. The Government’s Debt Committee provided its approval for an additional USD
  30 million loan in November 2023.
• In September 2024, the EBRD obtained the internal approvals of the additional loan of USD 30 million in coordination with
  MoPIC and MWI, with the aim of signing the additional loan. The legal document for this additional loan was signed on 23rd December 2024. The disbursement of the GCFF grant, and the SSF grant will be made on a pro-rata basis with the existing loan of EUR 25 million and the additional loan of USD 30 million.
• The implementation timeline for the overall project was extended to the end of 2027. The team sought for the approval to
  the GCFF committee and obtained its approval.
• The Bank’s consultant (Engicon), supporting the inclusive procurement process, has started to design the structure of the
  process in Jordan through a number of training exercises and outreach to potential partners. This will enable the local
  population to benefit from not only first-time wastewater services but also employment opportunities. Competence Management Consultant and the Royal Scientific Society (which are both consultants funded by SSF grants from the EBRD) are collaborating on the inclusive aspects of the project.
• During the year of 2023, the project made significant progress. The construction completion rate of the tendered packages
  (3, 4 and 6) reached c.51% (as of end of December 2023), consisting of the completion of Contractor’s engineering design
  work and preparatory work for excavation, the production of the final design plans, the issuance of excavation permits by
  the relevant municipalities in the area, excavation and installation works, as well as road rehabilitation and asphalting in
  several villages of West Irbid. The previous year-end construction completion rate was around 10%. Due to a contractual condition of the EU MADAD grant, the EU grant is being disbursed first fully and then, will the other grants (GCFF and SSF) and the EBRD loan be disbursed on a pro-rata basis, expected to start in H1-2025.
• During the year of 2024, the implementation of the project and the disbursements had been made steadily, which brought the project completion rate (for the three tendered packages) to c.68.6% as of December end 2024. EU MADAD fund has almost been disbursed as of December 2024. WAJ made progress in the remaining packages. For Package one, the first stage tendering was issued on 27th August 2024, and its closing date is 4th February 2025.For Package 2, the first stage tender was issued on 27th August 2024 and closed on 21st January 2025. Currently it is under review.