MIGA Backs Wastewater Treatment Plant in Jordan
Plant will produce treated wastewater for irrigation while addressing environmental and health concerns
View the press release in Arabic
Washington, July 23, 2013 - The Multilateral Investment Guarantee Agency (MIGA), the political risk insurance arm of the World Bank Group, is supporting Jordan’s efforts to address its severe water deficit and thereby strengthen the country’s growth potential. The Agency announced it is insuring both the existing wastewater treatment plant and the expansion of the plant at AS-Samra, northeast of Amman that will provide a much-needed source of treated wastewater suitable for irrigation.
The best use of the country’s very limited water resources—including renewable water resources—is a top priority for Jordan and the expansion is expected to increase the water treatment capacity of the plant by 37 percent. The expanded plant will also help address major environmental and health issues that have occurred when untreated wastewater has been used for irrigation or discharged into rivers and other water bodies. The sludge treatment capacity will increase by around 80 percent. In addition, the wastewater treatment plant will generate the vast majority of power needed for its operations by using the hydraulic potential energy at the inlet and outlet of the plant as well as onsite biogas produced in the sludge digesters.
MIGA’s guarantees of $13.1 million cover equity investments (including future retained earnings and a performance bond) by Suez Environnement S.A., Infilco Degremont, Inc., and Morganti Group Inc. The coverage is against the risk of breach of contract for up to 20 years.
The plant is operated by Samra Wastewater Treatment Plant Company, Ltd on an extended 25-year build-operate-transfer (BOT) basis—the first BOT project in Jordan. It is also the first public-private partnership in the country. While foreign direct investment in Jordan’s water and wastewater sector is still limited in scope, it is innovative in nature. The successful implementation of the AS Samra plant expansion will have very positive demonstration effects on other similar projects in the country.
The expansion will include the addition of two more treatment lines to the existing four lines and is expected to be completed by the end of June 2015. MIGA also insured the existing AS Samra Wastewater Treatment plant built in 2008. The expansion is necessary to meet the demand of the population beyond 2015.
“We are pleased to provide continued support to this wastewater treatment plant that will provide much-needed water for irrigation while improving Jordanians’ health and environment,” said MIGA Executive Vice President Keiko Honda. “Moreover, Jordan’s water scarcity is widely seen as the most important restriction on the country’s sustainable economic growth, so we expect this project to have even farther-reaching benefits.”
“MIGA’s guarantees were critical for us to continue this project,” said Frederic Claux, Head of Degremont BOT Activity. “They offer a measure of security that allows us to continue investing in this plant to meet the population’s needs over the 25-year concession period.”
“We are pleased to be part of the private sector solution to an extremely important regional issue—providing adequate water infrastructure,” said Thomas Langford, Financial Advisor to the Morganti Group, Inc.
MULTILATERAL INVESTMENT GUARANTEE AGENCY
A Member of the World Bank Group
1818 H Street, NW, Washington, DC 20433
Mallory Saleson, MIGA
Tel: +1 202 473-0844
Rebecca Post, MIGA
Tel: +1 202-473-1964
Cara Santos Pianesi