EBRD is considering $11.1mn loan to Amman municipality to finance solid waste investments

By bne IntelliNews January 27, 2021

The European Bank for Reconstruction and Development (EBRD) is on the verge of approving a JOD7.9mn ($11.1mn) in financing to fund priority solid waste investments of the Greater Amman Municipality (GAM). The funds will go towards financing the construction of Cell number 6 at Al-Ghabawi landfill and the supply and installation of a new gas turbine, which will be connected to the existing landfill gas recovery system at the landfill. The project will also receive a €5mn grant from the European Union.

The financing is part of a larger programme structured in two tranches. Tranche one consisting of JOD40mn was committed at signing in November 2016 and was used to refinance GAM’s existing debt to release funds for a comprehensive solid waste crisis response programme after the deluge of Syrian refugees threatened to overwhelm the municipal waste management system.

Tranche two consisting of an up to $50mn loan from EBRD remains uncommitted and will finance a series of investments aimed at addressing Amman's urgent solid waste needs. Tranche II components are expected to be co-financed by capex grants of up to 50%, provided by international donors.

Under tranche two, as of June 2020, EBRD had financed 5 sub-projects, including a JOD3.25mn construction of a fifth cell at Al-Ghabawi Landfill and its associated leachate lagoons; a JOD9.9mn purchase of 75 compactors and other equipment to be used by GAM in solid waste operations; a JOD3.2mn loan to finance the capping of cell 4 wells, drilling and installation of the Landfill Gas Recovery collection system, and connecting it to the existing LFG system for cells 1,2 and 3; a JOD2.5mn upgrade and rehabilitation of Al-Shaer waste transfer station; and JOD2.4mn to finance the purchase of 25 sweeper vehicles for use in solid waste operations in Amman.

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