Announcement of Jordan to Expand Sewerage Services in Greater Amman on January 10, 1985

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. BANK NEWS RELEASE NO. 85/18 Contact: Fawzi Rihane January 10, 1985 (202) 477-5325 JORDAN TO EXPAND SEWERAGE SERVICES IN GREATER AMMAN Jordan is expanding the water supply and sewerage services in an area within Greater Amman. By 1989 nearly all 900,000 residents in the project area will have access to these services, which currently cover only about 67 percent of the population. Some 150,000 poor people will benefit. The World Bank is providing a loan of $30 million to support the project. Greater Amman, an area within a 25-kilometer radius from the city center, covers the municipality of Amman, 11 other municipalities, and some small villages. By the year 2000 its current population of about 1.5 million is projected to increase to about 3 million. The project will construct about 350 kilometers of the sewage system in the area. It will also lessen the pollution of groundwater by reducing the filtering of effluents from cesspools within Greater Amman. By 1989 only 45 percent of the residents in the area will be served by cesspools, compared to 60 percent today. Sewage treatment works will be carried in the drainage zones for the suburban areas of Baqa'a Valley and Wadi es Sir. Waste water will be recycled and used for agriculture. The water distribution system will be rehabilitated or extended to improve the supply and to reduce water losses. Technical assistance will be provided to further develop the Water Authority of Jordan. Financial procedures will be established to help the Authority to achieve self-sufficiency in its finances through adequate water and sewerage charges. The project is expected to be completed by 1989 at a cost of $56 million. The loan from The World Bank will finance about 53 percent of the cost. And the Government of Jordan is making a budgetary outlay for the remainder. The World Bank loan is for 15 years including three years' grace, with a variable interest rate, currently 9.29 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on undisbursed balances and a front-end fee of 0.25 percent on the amount of the loan. NOTE: Money figures are expressed in U.S. dollar equivalents.