PUBLIC-PRIVATE PARTNERSHIPS BRIEFS Jordan: As-Samra Wastewater Plant Expansion Overview In 2006, the Government of Jordan awarded a 25 year build-operate-transfer (BOT) contract to Samra Wastewater Treatment Plant Company (WWTP). It is the first BOT and public-private partnership in the country. The project directly addresses Jordan’s capacity to address its severe water deficit of about 450 cubic meters annually and thus, its growth capacity. When completed the As-Samra wastewater treatment plant will be the largest facility of its kind in the country. The Multilateral Investment Guarantee Agency (MIGA) has supported two phases of the project by providing equity investment guarantees to the project financiers. The first phase ran from 2006 to 2015 and the expansion phase of the project now seeks to meet local demand post 2015. This series showcases how the World Bank Group supports the development and implementation of public-private partnerships. This support comes in the form of public sector loans, private sector finance, sector and transaction advice, guarantees, and output-based aid. PUBLIC-PRIVATE PARTNERSHIPS - MAY 2016 Background meet the needs of the population from 2015 to 2025. The expansion will include the addition of two more treatment Jordan is the fourth most water-poor country in the world. lines to the existing four treatment lines. The sludge treat- As per Jordan’s Water Strategy for 2008 to 2022, about 63 ment capacity will also be increased by approximately 80 percent of the population are served by sewerage systems percent. Construction of the expansion is scheduled for producing about 100 million cubic meters of effluent per completion by the end of June 2015. year that is reused primarily in agriculture. In fact, in 2011, more than 60 percent of crops in the Jordan Valley were irrigated with treated wastewater. World Bank Group Role The MIGA-supported plant will have an average daily For Phase II, MIGA issued guarantees of $13.1 million capacity of 267,000 m3 of water that will increase by nearly covering equity investments (including future retained 40 percent over time and it will treat wastewater from the earnings and performance bond) by Suez Environnement, Amman and Zarqa areas that have a combined population SA (Suez), Infilco Degremont, Inc. (IDI), and Morganti of approximately 2.3 million people. The scarcity of water Group Inc. (Morganti) in the As-Samra Wastewater in Jordan is one of the biggest impediments to sustainable Treatment Project in Jordan. The coverage is for a period of economic growth in the country. up to 20 years against the risk of breach of contract. MIGA has previously issued guarantees totaling $4.1 million The construction of the As-Samra plant is divided into two to cover an equity investment in the water plant and a phases, with phase 1 designed to satisfy the local demand performance bond for Phase I of the project. MIGA’s Phase through 2015, and phase 2 consisting of an expansion of I guarantee is for a period of up to 15 years against the risk the plant to meet demand from 2015 to 2025. For Phase of breach of contract. I, MIGA provided a $4 million guarantee to cover an equity investment and a water performance bond to Infilco Degrémont Inc. and Suez Environnement S.A., investors Outcomes in WWTP. The use of treated wastewater for agricultural and industrial use, will free up potable water to be redirected for use Project Description as drinking water. WWTP will also address and rectify a serious environmental issue by processing wastewater. The project involves the expansion of the existing Currently, poorly treated water is being discharged into wastewater treatment plant at AS-Samra, northeast of clean water. In addition to improving the water quality, Amman by WWTP. The total investment for the expansion the plant will help improve the health and environmental is estimated at $205.3 million. The project will increase the conditions in surrounding areas. wastewater treatment capacity by almost 40 percent, from the current 267,000 m³ per day to 365,000 m³ per day, to Photo Credits Front: SuSanA Secretariat / Creative Commons license, creativecommons.org/licenses/by/2.0 | Back: 90.5 WESA / Creative Commons license, creativecommons.org/licenses/by-sa/2.0 worldbank.org/ppp @WBG_PPP scribd.com/wbg_ppp