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As-Samra Wastewater Treatment Plant Company Ltd.

$4.1 million
Water & Wastewater
Project Brief
Not Active

MIGA has issued guarantees to Infilco Degrémont Inc. and Suez Environnement S.A. covering their investment in As-Samra Wastewater Treatment Plant Company Limited. The investment is for the construction of a wastewater treatment plant, under a 25-year build-operate-transfer (BOT) agreement in Jordan. The guarantees, totaling $4.1 million, cover an equity investment in the water plant and a performance bond. MIGA’s guarantee is for a period of up to 15 years against the risk of breach of contract.

The project consists of the design, construction, operation, maintenance, and financing of a new wastewater treatment plant in As-Samra. The new plant is built on the site of an existing overloaded and inadequate water treatment system. The construction of the plant is divided into two phases, with phase 1 designed to satisfy the local demand through 2015, and phase 2 consisting of an expansion of the plant to meet demand from 2015 to 2025. MIGA’s guarantee is for phase 1 only.

This project supports a critical need in one of the ten most water-deprived countries in the world. The scarcity of water in Jordan is one of the biggest impediments to sustainable economic growth in the country. The MIGA-supported plant will have an average daily capacity of 267,000 m3 of water, and it will treat wastewater from the Amman and Zarqa areas (with a combined population of approximately 2.3 million people).

The use of treated wastewater will free up drinking water by decreasing agricultural and industrial use of potable water. The treatment plant will also address and rectify a serious environmental issue by processing wastewater. Currently, poorly treated water is being discharged into clean water. In addition to improving the water quality, the plant will help improve the health and environmental conditions in surrounding areas.

This is not only the first BOT project in Jordan, but also the first public-private partnership in financing and management of a public infrastructure project in the country.

MIGA’s participation in the project is consistent with the agency’s strategic focus on infrastructure. The project also meets MIGA’s objective of increasing the agency’s exposure in the Middle East and North Africa region.