GAM Solid Waste Crisis Response – LFG Expansion

Country | Jordan 

Region | Asia

SECTOR | energy

QII Principle | Principle 3: Environmental Considerations

QII Sub-Principles | Climate

Overview

Cost: EUR 7.4 million

Size: EUR 7.4 million

Parties involved (public and private): Greater Amman Municipality (GAM).

Relevant contractual details (type, length etc.): Design-build contract for a duration of around 14 months

Context: In 2015, EBRD financed the construction of a comprehensive Landfill Gas Recovery (LFG) system at Al-Ghabawi landfill. The project, which is fully operational now, involved the capping of cells 1, 2 and 3 at the landfill, the installation of the LFG recovery system, and connecting the system to the electricity grid, generating around 4.8 MW of electricity. In 2019, EBRD has signed another loan agreement with GAM to finance the expansion of the LFG system to include cell 4.

Aim(s) of the project: The Bank proceeds will be utilized to cap and integrate Cell 4 with the existing LFG system and increase the system's capacity by another 3 MW.

Timeline

The contract has been awarded on a design-build basis in October 2019. Plant commissioning and commencement of operations is expected to take place in early January 2021. The contract has been awarded to the same contractor that completed the construction works of the original LFG project (for cells 1, 2 and 3). The contractor also has an operation service contract for cells 1, 2, 3 and 4 that runs until May 2021 (2 years from completion of the original LFG project).

Relevance to QII

Project supports climate resilience as CO2 emission reductions up to 280,000 ton CO2 equivalent per year are expected.

Benefits

Reduction in CO2 emissions and reduction in GAM's electricity bill due to increased electricity production.

Expected and realised benefits: The project is expected to generate CO2 savings up to 280,000 ton CO2 equivalent per year due to the avoidance of the release of methane into the atmosphere from the landfill. Moreover, the project is also expected to generate up to 3MW of electricity, thus reducing GAM's energy bill by an estimate of EUR 2 million per year.

Metrics

CO₂ emission reductions up to 280,000 ton CO₂ equivalent per year and increased electricity production of up to 3 MW, thus resulting in a reduction of around EUR 2 million in GAM’s energy bill.

Name of Institute

European Bank for Reconstruction and Development