Jordan Compact

  • Grant Total: $275,100,000
  • Grant Committed: $267,311,208
  • Grant Expended: $254,150,684
  • Signed: October 25, 2010
  • Entry Into Force: December 13, 2011
  • Completed: December 13, 2016

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 also 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.

How smart aid can lead to a more secure, prosperous future for Jordan
by Dana J. Hyde, MCC CEO
This blog post appears on Medium.com.

Financials as of June 30, 2016

As-Samra Wastewater Treatment Plant Expansion Project

The As-Samra Wastewater Treatment Plant expansion increased the average hydraulic capacity of the original plant by 36 percent and expanded sludge capacity by 75 percent. With Jordan facing dramatic growth in population rates, the expansion means 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 Finance Magazine in June 2013.

Wastewater Network Reinforcement and Expansion Project

Zarqa Governorate was served by an outdated sewer system that limited the collection of wastewater and endangered public health. The system regularly overflowed into city streets and the surrounding environment, relying on pump stations that had insufficient capacity and served only 72 percent of the population.

The Wastewater Network Reinforcement and Expansion Project (Wastewater Network Project) addressed these problems by building 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 will increase the percentage of the local population directly connected to the sewer system and collect more wastewater to be treated and cleaned by the As-Samra Wastewater Treatment plant for irrigation use in the Jordan Valley.

Water Network Restructuring and Rehabilitation Project

The Water Network Project represents the largest investment in water infrastructure improvements for the Zarqa Governorate water network system. The completed Water Network Project includes the construction of over 800 kilometers of new water pipes, a new pump station, installation of 50,000 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.

A sub-activity aimed at improving the distributional effects of the Projects, the Water Smart Homes Activity Project had the aim of improving the quality of home water systems and decreasing costs that households, particularly poor households, in Zarqa Governorate incurred to satisfy their subsistence water needs. 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.