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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 43358-50 PROJECT APPRAISAL DOCUMENT ON A Public Disclosure Authorized PROPOSED LOAN . IN THE AMOUNT OF US$25.0 MILLION TO THE GREATER AMMAN MUNICIPALITY WITH A GUARANTEE OF THE HASHEMITE KINGDOM OF JORDAN FOR AN Public Disclosure Authorized AMMAN SOLID WASTE MANAGEMENT PROJECT August 28,2008 Sustainable Development Department Middle East and North Africa Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective August 18,2008) Currency Unit = Jordanian Dinar (JD) JD0.709 = US$l US$1.41 = JD 1 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS CAS Country Assistance Strategy CDM Clean Development Mechanism CERs Carbon Emission Reductions CFE Carbon Fund for Europe DOE Designated Operational Entity EB Clean Development Mechanism Executive Board EC European Commission EPC Executive Privatization Commission ERPA Emission Reductions Purchase Agreement ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Management Plan FM Financial management FMS Financial management system GAM Greater Amman Municipality GHG Greenhouse gas IUR Interim Unaudited Report JD Jordanian Dinar kwh Kilowatt hour LFG Landfill gas MENA Middle East and North Afnca METAP Mediterranean Environmental Technical Assistance Program MoE Ministry ofEnvironment MoF Ministry ofFinance MoPIC Ministry ofPlanning and International Cooperation MSW Municipal solid waste MSWM Municipal solid waste management MW Megawatt NPV Net present value PDD Project Design Document PSP Private sector participation RPF Resettlement Policy Framework SWM Solid waste management SWMDP Solid Waste Municipal Disposal Plan USAID United States Agency for International Development Vice President: Daniella Gressani Country Director: Hedi Larbi Acting Sector Manager: Jonathan Walters Task Team Leader: Jaafar Sadok Friaa FOR OFFICIAL USE ONLY THE HASHEMITE KINGDOM OF JORDAN AMMAN SOLID WASTE MANAGEMENT PROJECT CONTENTS Page I. STRATEGIC CONTEXT AND RATIONALE ................................................................. 1 A . Country and sector issues .................................................................................................... 1 B. Rationale for Bank involvement ......................................................................................... 5 C . Higher level objectives to which the project contributes .................................................... 6 I1. PROJECT DESCRIPTION ............................................................................................. 6 A . Lending instrument ............................................................................................................. 6 B. Project development objective and key indicators.............................................................. 6 C . Project components ............................................................................................................. 7 D. Lessons learned and reflected in the project design............................................................ 8 E. Alternatives considered and reasons for rejection .............................................................. 9 I11. IMPLEMENTATION .................................................................................................... 10 A . Institutional and implementation arrangements ................................................................ 10 B. Monitoring and evaluation of outcomes/results ................................................................ 11 C . Sustainability ..................................................................................................................... 11 D. Critical risks and possible controversial aspects ............................................................... 12 E. Loadcredit conditions and covenants ............................................................................... 14 IV. APPRAISAL SUMMARY ............................................................................................. 14 A . Economic and financial analyses ...................................................................................... 14 B. Technical ........................................................................................................................... 15 C . Fiduciary ........................................................................................................................... 16 D. Social ................................................................................................................................. 17 E. Environment ...................................................................................................................... 18 F. Safeguard policies ............................................................................................................. 19 G. Policy Exceptions and Readiness ...................................................................................... 20 Annex 1: Country and Sector or Project Background ............................................................ 21 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ................. 25 I I This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization . Annex 3: Monitoring and Evaluation Arrangements.............................................................. 26 Annex 4: Detailed Project Description...................................................................................... 29 Annex 4 bis: Attached Carbon Finance Operation ................................................................. 32 Annex 5: Project Costs ............................................................................................................... 35 Annex 6: Implementation Arrangements ................................................................................. 35 Annex 7: Financial Management and Disbursement Arrangements ..................................... 38 Annex 8: Procurement Arrangements ...................................................................................... 43 Annex 9: Economic and Financial Analysis ............................................................................. 53 Annex 10: Safeguard Policy Issues ............................................................................................ 68 Annex 11: Project Preparation and Supervision ..................................................................... 88 Annex 12: Documents in the Project File ................................................................................. 89 Annex 13: Statement of Loans and Credits .............................................................................. 90 Annex 14: Country at a Glance ................................................................................................. 91 Annex 15: Map 36439 ................................................................................................................. 93 THE HASHEMITE KINGDOM OF JORDAN AMMAN SOLID WASTE MANAGEMENT PROJECT PROJECT APPRAISAL DOCUMENT MIDDLE EAST AND NORTH AFRICA MNSSD Date: August 28, 2008 Team Leader: Jaafar Sadok Friaa Country Director: Hedi Larbi Sectors: Solid waste management (85%);Sub- Sector ManagedDirector- : Jonathan D. Walters national government administration (1 5%) Themes: -Pollution management and environmental health (P) Project ID: P104960 Environmental screening category: A Lending:v Instrument: SDecific Investment Loan [XI Loan [ ] Credit [ ] Grant [ ] Guarantee [ ] Other: For Loans/Credits/Others: Total Bank financing (US$m.): 25.00 Borrower: Greater Amman Municipality (GAM) Guarantor: Government of Jordan Responsible Agency: Greater Amman Municipality Project implementation period: Start January 1,2009 End: December 3 1, 2013 Expected effectiveness date: January 1,2009 Expected closing date: June 30,2014 Does the project depart from the CAS in content or other significant respects? [ ]Yes [XINO Re$ PAD I. C. Does the project require any exceptions from Bank policies? Re$ PAD IKG. [ ]Yes [XINO Have these been approved by Bank management? []Yes [XINO &[]Yes [X No Does the project include any critical risks rated “substantial” or “high”? []Yes [XINO Ref: PAD III.E. Does the project meet the Regional criteria for readiness for implementation? [XIYes [ ]No Ref: PAD IKG. Project development objective Ref: PAD ILC., Technical Annex 3 (i)Environmentally upgrade and expand the existing municipal solid waste landfill to meet the city’s disposal needs up to 2013 and generate electricity while mitigating GHGs; and (ii)Improve the cost effectiveness of the existing municipal solid waste collection and transport system and improve overall cost recovery. Project description [one-sentence summary of each component] Re$ PAD ILD, Technical Annex 4 Component 1: Institutional Strengthening and Capacity Development. This component will finance technical assistance and capacity building activities benefiting GAM departments involved in the planning, development, operation, and evaluation of MSW services. This component will also finance (a) technical assistance to GAM in operating the landfill
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