The World Bank Report No: ISR11230 Implementation Status & Results Jordan JO-AMMAN SOLID WASTE MANAGEMENT AND CARBON FINANCE (P104960) Public Disclosure Copy Operation Name: JO-AMMAN SOLID WASTE MANAGEMENT AND CARBON Project Stage: Implementation Seq.No: 9 Status: ARCHIVED Archive Date: 04-Jul-2013 FINANCE (P104960) Country: Jordan Approval FY: 2009 Product Line: IBRD/IDA Region: MIDDLE EAST AND NORTH AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 30-Sep-2008 Original Closing Date 30-Jun-2014 Planned Mid Term Review Date 06-Jan-2012 Last Archived ISR Date 26-Dec-2012 Effectiveness Date 03-Mar-2009 Revised Closing Date 30-Jun-2014 Actual Mid Term Review Date 06-Jan-2012 Project Development Objectives JO-AMMAN SOLID WASTE MANAGEMENT AND CARBON FINANCE (P104960) Project Development Objective (from Project Appraisal Document) The development objectives of the proposed project are to strengthen the operational, financial, and environmental performance of MSWM in Amman. Specifically, the project will help achieve the following: (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. Has the Project Development Objective been changed since Board Approval of the Program? Yes No Component(s) Component Name Component Cost Institutional Strengthening and Capacity Development 1.80 Infrastructure Development 34.10 Public Disclosure Copy Project Management 0.60 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Unsatisfactory Unsatisfactory Overall Implementation Progress (IP) Unsatisfactory Unsatisfactory Overall Risk Rating Implementation Status Overview Page 1 of 5 The World Bank Report No: ISR11230 Project progress is currently unsatisfactory. Disbursements have stagnated at the low level already attained in Fall 2012. The main reason is as follows. Two thirds of loan funds are allocated to a single $25m landfill gas (LFG) collection and renewable energy production contract. This contract was signed in March 2012 with two years delay over the initial plan. However despite its signature almost a year and a half ago, construction is yet to start. In view of this delay, but on the basis that site works would soon Public Disclosure Copy begin, during the last supervision mission GAM and the team had prepared a level-1 restructuring (further detailed and justified in the last mission aide-memoire) which included: • reorienting the PDO, in particular to underline the important contribution of the project to renewable energy production in Jordan (with an economic rate of return of 25%), and to remove cost recovery objectives which GAM keeps pursuing but will not be attributable to project activities, • adding a direly needed 4th cell at the EL Ghabawi landfill (this would not affect safeguards), • the removal of new transfer stations from the project, which will be implemented outside of the project at a later date, while existing transfer stations are being improved, and • an extension of the closing date by one year to cope with delayed LFG contract implementation. MOPIC had agreed upon the principle of the restructuring during the June 2012 CPPR. However, the continuing disagreement between the LFG DBO contractor and GAM over the conditions required to start works now puts the relevance of such a restructuring into question. Locations Country First Administrative Division Location Planned Actual Jordan Not Entered Muhafazat 'Amman Jordan Not Entered Al Ghabawi Landfill Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Environmentally upgrade and expand the Text Value 1) 0% municipal solid waste Unchanged since previous 1) 80% municipal solid waste existing municipal solid collected and disposed of and mission. collected and disposed of and waste landfill to meet the city#s disposal needs managed in asanitary landfill. managed in a sanitary landfill. up to 2013 and generate electricity while 2) 0 MWh generated through 2) 160,000 MWh generated mitigating GHGs. the LFG recovery system. through the LFGrecovery system by 2013. Public Disclosure Copy Date 15-Dec-2008 21-Feb-2013 31-Dec-2013 Comments There is no planned date for the start of LFG collection operations given the uncertainty over the outcome of the discussions with the Operator. Page 2 of 5 The World Bank Report No: ISR11230 Improve the cost effectiveness of the existing Text Value 63% cost-recovery ratio for Unchanged since previous Cost-recovery ratio for SWM municipal solid waste collection and transport SWM in 2007. mission. improved from 63% in 2007 to system and improve overall cost recovery. 75% by 2013. Public Disclosure Copy Date 15-Dec-2008 21-Feb-2013 31-Dec-2013 Comments Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Disposal infrastructure constructed at Al Text Value 6 8 million tons 8 million tons Ghabawi landfill for a total capacity of 8 million Date 15-Dec-2008 14-Jun-2013 31-Dec-2011 tons of waste. Comments Cell 3 with a total capacity of 2 million tons is in operation. Discharge from the leachate treatment facility Text Value 0 Met since there is no Discharge from the leachate meets Jordanian standards. discharge. treatment facility meets standards Date 15-Dec-2008 14-Jun-2013 31-Dec-2011 Comments There is currently no discharge in the environment. The quality of groundwater is now periodically verified in test wells. 160,000 MWh produced and connected to the Text Value 0 MWh 0 MWh 160,000 MWh electricity grid by 2013 (cumulative) Date 15-Dec-2008 14-Jun-2013 31-Dec-2013 Comments There is no planned date for the start of LFG collection operations given the uncertainty over the outcome of the discussions with the Operator. 950,000 tons of CERs (as CO2 equivalent) Text Value 0 tCO2 eq 0 950,000 tCO2 eq Public Disclosure Copy generated by 2013 (cumulative) Date 15-Dec-2008 14-Jun-2013 31-Dec-2013 Comments There is no planned date for start of LFG plant operations. The ratio of KM travelled by collection vehicles Text Value 5.5 N.A. 2.5 in districts served by new transfer stations to Date 15-Dec-2008 21-Feb-2013 31-Dec-2013 the total tons of municipal waste collected in Comments The indicator was meant to be those districts (kms/tons) is reduced. redefined in case of a restructuring, as it cannot be reliably calculated. Refer to Page 3 of 5 The World Bank Report No: ISR11230 aide-memoire on the transfer station question. Information on financial and sector Text Value N/A Unchanged since previous Financial and sector performance available for project and sector mission. performance reports Public Disclosure Copy reporting. produced. Date 15-Dec-2008 21-Feb-2013 31-Dec-2011 Comments The M&E consultant has provided its intermediary report towards designing a full project and sector performance monitoring system. Data on Financial Performance (as of 31-Jul-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P104960 IBRD-75730 Effective 30-Sep-2008 04-Dec-2008 03-Mar-2009 30-Jun-2014 30-Jun-2014 P107410 TF-92344 Effective 15-Jan-2009 15-Jan-2009 15-Jan-2009 30-Jun-2015 30-Jun-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P104960 IBRD-75730 Effective USD 25.00 25.00 0.00 4.99 20.01 20.00 P107410 TF-92344 Effective USD 25.00 4.42 8.40 0.05 4.33 1.00 Disbursement Graph Public Disclosure Copy Page 4 of 5 The World Bank Report No: ISR11230 Public Disclosure Copy Key Decisions Regarding Implementation Depending on the outcome of the discussions with the LFG Operator, GAM will need to revise its proposed request for a project restructuring. Restructuring History There has been no restructuring to date. Related Projects P107410-JO-Amman Landfill Gas Recovery Public Disclosure Copy Page 5 of 5