Jordan Compact

Recognizing that Jordan is among the world’s driest countries and water scarcity impacts every aspect of life, the $275 million MCC Jordan Compact successfully constructed over 1,100 km of water and wastewater pipelines in the heavily populated governorate of Zarqa. The compact expanded the nation’s largest and most modern wastewater treatment plant under a highly acclaimed public-private partnership financing structure. 

The Compact has also helped train thousands of citizens on best practices in water conservation and provided instruction and real job opportunities to women interested in becoming plumbers. The Compact’s investments have been well coordinated with USAID assistance and are responsive to Jordan’s appeal for more long-term support to the country’s water and wastewater infrastructure, now further impacted by the Syrian refugee crisis.

Financials

Compact Budget

Milestones

  • Signed:
    October 25, 2010
  • Entry Into Force:
    December 13, 2011
  • Closed:
    December 13, 2016

Compact Projects

As-Samra Wastewater Treatment Plant Expansion Project

  • $97,120,950Project Total Amount

With Jordan facing dramatic growth in population rates, the expansion of the As-Samra Wastewater Treatment Plant means that the government can now address 70 percent of the country’s wastewater-treatment needs. The expanded plant also provides 133 million cubic meters of high-quality treated water per year – over 10 percent of Jordan’s entire annual water resources – for use in irrigation in the Jordan Valley. The treatment plant also produces 12.8 megawatts of renewable energy, or 78 percent of the plant’s energy requirements, through biogas and hydropower, making it one of the most modern and environmentally sensitive treatment plants in the Middle East. 

Recognizing the Government of Jordan’s desire to help mobilize private sector funding and water expertise, the Millennium Challenge Corporation invested $93 million alongside an additional $110 million from the private sector and $20 million from the Government of Jordan in a Public Private Partnership (PPP) led by the Jordanian Ministry of Water and Irrigation. This arrangement enhanced the operational sustainability of the project by transferring some risks related to financing, construction and operations to the private sector.

The project has won several international awards, including the Water and Energy Exchange International Award for Innovative Financing in February 2013 and the Best Water Project Award by World Finances Magazine in June 2013.

Projected Long-Term Results

  • Estimated Beneficiaries Beneficiaries are counted in the Wastewater Network Reinforcement and Expansion Project
  • Estimated Net Benefits Benefits are counted in the Wastewater Network Reinforcement and Expansion Project

Wastewater Network Reinforcement and Expansion Project

  • $88,125,823Project Total Amount

The Wastewater Network Reinforcement and Expansion Project (Wastewater Network Project) constructed over 300 kilometers of new sewers in the neighborhoods of East Zarqa and West Zarqa, both of which lacked proper sewer connections. 

Sewer line extensions increased direct access for the local population to the sewer system and now collect more wastewater to be treated by the As-Samra Wastewater Treatment plant for irrigation use in the Jordan Valley.

Projected Long-Term Results

  • Estimated Beneficiaries 2,023,000
  • Estimated Net Benefits $602,500,000

Water Network Restructuring and Rehabilitation Project

  • $90,716,134Project Total Amount

The Water Network Project represents the largest investment in the water sector in Zarqa. The completed Water Network Project includes the rehabilitationof over 800 kilometers of new water pipes, a new pump station, installation of approximately 40,000 household water meters and construction of a new utility administration building. The investment has established clearer and more efficient district metering areas (DMAs), laying the foundation for better operation and management of the entire water utility.

The Water Smart Homes Activity Project improved the quality of plumbing and water storage in the homes poor families in Zarqa. This activity helped train thousands of citizens on best practices in water conservation and provided instruction and real job opportunities to women interested in becoming plumbers.

Projected Long-Term Results

  • Estimated Beneficiaries 1,634,000
  • Estimated Net Benefits $197,800,000