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Amman municipality to turn waste into energy through $13m EBRD loan

By JT - May 16,2015 - Last updated at May 16,2015

AMMAN — The European Bank for Reconstruction and Development (EBRD) is providing a $13 million loan to the Greater Amman Municipality to help manage solid waste, generate electricity and reduce carbon dioxide emissions, it said in a statement.

The project will help implement a comprehensive landfill-gas recovery system, “the first of its kind in Jordan”, designed and constructed with gas-collection technology, EBRD said on Saturday. 

Given the innovative nature of the investment and the potential energy savings, EBRD is co-financing the loan with $5 million from the Bank’s Green Energy Special Fund (GESF),” the statement said. 

The main donor to the GESF is the Taiwanese International Cooperation and Development Fund, according to EBRD.

The landfill gas will be used to generate electricity for delivery to the national grid, replacing electricity produced by grid-connected power plants that previously used heavy fuel oil.

The investment is expected to create “substantial benefits for the environment”. It will also serve as a model by establishing a new solid waste company, owned by the city of Amman, and by introducing a public service contract between the city and the newly created company.

“This project provides a unique opportunity to promote sector reform. We aim to strengthen the operational, financial and environmental performance of municipal solid waste management in Amman. The project represents a further deepening and strengthening of our engagement in Jordan,” the statement quoted EBRD President Suma Chakrabarti as saying.

Amman Mayor Aqel Biltaji, said the city “is proud to partner with EBRD” in resorting to nature for the production of energy.

“Technical cooperation activities for a feasibility study and environmental and social due diligence were financially supported by the European Union through its Neighbourhood Investment Facility,” the EBRD statement said. 

The government of Austria is providing further resources to ensure appropriate supervision of engineering and to support project implementation. 

The project will also benefit from technical cooperation for the divestment of solid waste services, for corporate development and for assistance with governance, as well as to oversee the preparation of a livelihood restoration plan, according to the statement

Jordan became a member of EBRD in 2012 and the bank has since committed $422 million across 22 projects in various sectors of the economy. 

Late last week, Jordan was elected as vice president of the EBRD’s board of governors alongside Belgium, according to a statement released Saturday by the Planning and International Cooperation Ministry and carried by the Jordan News Agency, Petra. 

Italy was elected as board president. 

At the EBRD meeting in Georgia, Planning and International Cooperation Minister Imad Fakhoury urged the bank to support the Kingdom in implementing its economic blueprint “Jordan 2025”, noting that the strategies outlined there are in line with the bank’s priority areas, Petra reported.

Thanking the bank for its support for Middle East countries, Fakhoury said its assistance to Jordan is vital as the Kingdom embarks on key development projects in renewable energy, water security and other major sectors.

In November 2013, the Kingdom received the status of an aid-receiving country from EBRD.

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