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Summary of proposed guarantee

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.

 

Project name
AS Samra Wastewater Treatment Expansion Project
Project ID
3943
Fiscal year
2013
Status
Active
Guarantee holder
SUEZ ENVIRONNEMENT S.A.
Infilco Degrémont
Morganti Group, Inc.
Investor country
United States
France
Host country
Jordan
Environmental category
B
Sector
Water and Wastewater
Date SPG disclosed
May 07, 2013
Project Board date
June 20, 2013
Gross exposure
 $10.0 million
Project type
Non-SIP
Strategic priority area
Complex Project
ESRS
ESRS for AS Samra Wastewater Treatment Expansion Project

Project Description

This summary covers equity investments (including future retained earnings and performance bond) by Suez Environnement, SA (Suez), Infilco Degremont, Inc. (IDI), and Morganti Group Inc. (Morganti) to support expansion of the existing AS Samra Wastewater Treatment Project in Jordan. Suez, IDI, and Morganti have applied for MIGA guarantees of $10 million for a period of up to 20 years against the risk of breach of contract.

The project involves the expansion of the existing wastewater treatment plant at AS-Samra, northeast of Amman by AS Samra Wastewater Treatment Plant Company, Ltd., on an extended 25-year build-operate-transfer (BOT) basis. The total investment for the expansion is estimated at $211.3 million. The project will increase the wastewater treatment capacity by some 37 percent, from the current 267,000 m³ per day to 365,000 m³ per day, to meet the need of the population from 2015 to 2025. The expansion will include the addition of two more treatment lines to the existing four treatment lines. The sludge treatment capacity will also be increased by approximately 80 percent. Construction of the expansion is scheduled for completion by the end of 2015.          

Environmental Categorization

The project is a category B under MIGA’s Policy on Social and Environmental Sustainability. Click here to view the Environmental and Social Review Summary.

Development Impact

Jordan is the fourth water-poorest country in the world. The best use of its very limited water resources, including renewable water resources, is a top priority for the government. Wastewater has caused major environmental and health concerns when the wastewater is used for irrigation or discharged into rivers and other water bodies. The existing AS Samra Wastewater Treatment Project built in 2008 has played a critical role in wastewater treatment. However, given its limited capacity, the plant can only meet the demand of the population through 2015. 

The expansion project will have a strong development impact by increasing wastewater treatment capacity and sludge treatment capacity; introducing additional investment; improving the local environment; promoting re-use of treated wastewater to meet increasing water demand; employment generation, skills, and technology transfer; contributing to government revenues; and increasing demand for local goods and services.  

The proposed project is aligned with the World Bank Group’s Country Partnership Strategy for Jordan, which calls for promotion of private sector development. This project is also aligned with MIGA’s strategic priority of supporting investments in complex infrastructure projects. 

 
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