Closed Compact Report: Jordan Compact | September 2018

Water Network Restructuring and Rehabilitation Project

  • $58,220,000Original Compact Project Amount
  • $75,789,801Total Disbursed

Estimated Benefits

Estimated benefits correspond to $188 million of project funds, where cost-benefit analysis was conducted.

Estimated Benefits for the Water Network Restructuring and Rehabilitation Project
Time Estimated Economic Rate of Return (ERR) over 20 years Estimated beneficiaries over 20 years Estimated net benefits over 20 years
At the time of signing 14 percent 2,000,000

(5.1 million revised) This corresponds to the population increment of Zarqa and Amman over 20 years plus about 50,000 agricultural beneficiaries. The total estimated beneficiary population would have been about 5.1 million if one considers the total population as beneficiaries and not the cumulative increment. This is the position for the end of compact re-assessment.


2005 PPP

At compact closure 21 percent 9,000,000

The higher beneficiary number reflects the revised view of project benefits as primarily comprising resource savings to the economy at large. To date, observations do not validate expected changes in consumer usage of water and expenditure on water that were anticipated at the time of compact development. The number includes a farming population in the Jordan Valley that would have lost livelihoods in the absence of access to treated waste water to substitute for declining available supplies of fresh surface water for use in irrigation.


2012 constant (approximately 2005 PPP $700 million). The original presentation was in 2005 PPP dollars for international comparisons. The end of compact analysis was carried out in 2012 constant values.

The economic analysis for the Wastewater Network and As-Samra Wastewater Treatment Plant Expansion Projects was based on valuing savings in the cost of water supply for the Government of Jordan due to the substitution of treated wastewater for use in irrigated agriculture where more expensive surface fresh water otherwise would have been used. The estimated ERR for the projects increased from 14 percent when the compact was signed to 21 percent at the end of the compact due primarily to two factors. First, the project exceeded its civil works targets, providing higher water collection capacity than anticipated at the time of compact development. Second, the cost of bulk fresh water rose during compact implementation, increasing the value of cost savings from substituting treated wastewater for fresh water for the Government.

Project Description

In 2007, the wastewater collection system in Zarqa Governorate was limited in reach and endangered public health. The system frequently overflowed into city streets and the surrounding environment, relied on pump stations that had insufficient capacity, and did not serve nearly 30 percent of the population. The Wastewater Network Projectrepresented the largest investment in wastewater infrastructure improvements for Zarqa Governorate system. The objectives of the project were to (i) increase access to the wastewater network, (ii) increase the volume of wastewater collected within Zarqa Governorate for treatment and reuse, and (iii) reduce the incidents of sewage overflow.

The Wastewater Network Project was originally comprised of two activities: (i) the reinforcement of existing networks and rehabilitation of existing sewer main lines in West Zarqa, and (ii) the reinforcement of existing networks and rehabilitation of existing sewer main lines in East Zarqa.

The project extended service to households that were not connected to the sewer network by constructing over 300 kilometers of new sewers in the neighborhoods of East Zarqa and West Zarqa, both of which lacked access to the sewer network.The extension of lateral sewer lines raised wastewater service coverage rates from 72 percent to about 84 percent of the local Jordanian population, though coverage rates of the full population dropped due to the influx of Syrian and Iraqi refugees. These new customer connections also generated additional wastewater. The project provided more than 8,700 connection points to the wastewater pipes, which allowed over 54,800 people to be connected to the new wastewater system. These new customer connections generated additional wastewater which is treated at the As-Samra Wastewater Treatment Plant and reused in agriculture downstream in the Jordan Valley.The project also utilized unused budget identified during implementation of the compactto add 65 kilometers of pipes to the Princess Haya neighborhood of the Zarqa Governorate and to purchase high pressure jet cleaning vehicles for the water utility to enhance system maintenance. More information can be found in the Compact Changes section below.

Evaluation Findings

The Wastewater Network Project impact evaluation seeks to understand whether households and businesses benefit from increased access to the wastewater network and whether farmers substitute fresh water with treated water for irrigation. Preliminary analysis indicates that households are connecting to the network at significant rates, increasing the flow of wastewater to the As-Samra Wastewater Treatment Plant.

Status of the evaluation
Component Status
Baseline Report Completed in 2017
Midline Report Analysis complete 2017, report writing ongoing
Final Report Surveys to be completed in 2018

Key performance indicators and outputs at compact end date

Key performance indicators and outputs at compact end date
Activity/Outcome Key Performance Indicator Baseline End of Compact Target Quarter 1 through Quarter 20 Actuals (as of Dec 2012) Percent Compact Target Satisfied (as of Dec 2012)
Infrastructure Investment Activity Continuity of Supply – MCC Areas 36 42.5
Continuity of Supply – Network Wide 36 70 52 45%
Continuity of Supply – Non-MCC Areas 36 48
Kilometers of pipelines that are expanded, reinforced or rehabilitated 0 741 864.7 117%
NRW – MCC DMAs 61.6 19.3 35.5 62%
NRW – Network Wide 61.6 46.6 50.7 72%
NRW – Non-MCC DMAs 61.6 70.4
Replacement of customer meters 0 36,168 41,650 115%
Water Smart Homes Activity Number of National Aid fund households with improved water and wastewater network 0 4,494 3,958 88%
Number of people who attended the awareness sessions 0 52,200 64,002 123%

Explanation of Results

By applying unused budget identified during implementation of the compact, the Wastewater Network Project built more kilometers of pipes and connection points than expected. With this expansion, more people subscribed to the wastewater network at the end of the compact than forecasted. Despite increasing the number of people served by the wastewater network beyond the target, the percentage of the population connected to the wastewater network fell over the course of the compact by 35 percent. This was due to the sudden influx of Syrian and Iraqi refugees roughly halfway through the compact term, which caused the population in Zarqa to increase unexpectedly. Without the influx of refugees, if the population had grown at the rate expected at the beginning of the compact, the percentage of the population served by the network would have increased from 72 to 85 with the wastewater network expansion, nearly achieving the compact target.

Over the life of the compact, Miyahuna-Zarqa began managing the Zarqa utility and improved the customer service provided at the call center. With this improvement in response to customer complaints, more calls were recorded by Miyahuna each time there was a sewer network blockage. Despite the increase in number of calls and improvements in recording, the number of complaints received about sewer network blockage still fell substantially over the life of the compact, reflecting a better performing network.