Arab Bank OKs Jordan's first water sector finance deal

Jordan's first project finance deal in the water sector, the US$ 162 million As Samra wastewater treatment plant, reached financial close with the UK consultancy Mott MacDonald acting as lender's technical advisor to the lead arranger, the Arab Bank.

Jordan's first project finance deal in the water sector, the US$ 162 million As Samra wastewater treatment plant, reached financial close with the UK consultancy Mott MacDonald acting as lender's technical advisor to the lead arranger, the Arab Bank.

The US Agency for International Development, and a consortium of 11 Jordanian banks are contributing US$ 92 million and loaning US$ 60 million respectively for the development of the wastewater plant, procured by the Ministry of Water and Irrigation, which will help deliver wastewater services to the cities of Amman and Zarqa. The Samra Plant Company, comprising Suez Environment SA (20%), Ondeo Degremont Inc. (30%) and Morganti Inc. (50%, will construct the plant, upgrade a pre-treatment plant and take over the maintenance of 40 km of conveyance pipelines under a build, operate and transfer (BOT) contract, which will run for 22 years following the three-year construction period.

The project is expected to improve the quality of the treated effluent at As Samra and reduce odour problems. The site's location also helps to minimise overall power demand by generating power from hydraulic turbines on both the inlet and outlet, and from biogas production associated with the sludge treatment facilities.

Construction of the plant will start in 2004, and commissioning is scheduled for 2006.

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