The Multilateral Investment Guarantee Agency (MIGA), the political risk insurance arm of the World Bank Group, has announced it is insuring both the existing wastewater treatment plant and the expansion of the  plant at AS-Samra.

MIGA's guarantees of $13.1 million cover equity investments (including future retained earnings and a performance bond) by Suez Environnement S.A., Infilco Degremont, Inc., and Morganti Group Inc. The coverage is against the risk of breach of contract for up to 20 years.

The plant is operated by Samra Wastewater Treatment Plant Company, Ltd on a 25-year build-operate-transfer (BOT) basis-the first BOT  and the first PPP project in Jordan. The successful implementation of the AS Samra plant expansion will have very positive demonstration effects on other similar projects in the country.

MIGA Executive Vice President Keiko Honda said:

"We are pleased to provide continued support to this wastewater treatment plant that will provide much-needed water for irrigation while improving Jordanians' health and environment. Moreover, Jordan's water scarcity is widely seen as the most important restriction on the country's sustainable economic growth, so we expect this project to have even farther-reaching benefits."

Frederic Claux, Head of Degremont BOT Activity said:

"MIGA's guarantees were critical for us to continue this project. They offer a measure of security that allows us to continue investing in this plant to meet the population's needs over the 25-year concession period."

The remainder of the funding for the expansion was covered by a JOD100 million ($141 million) 20-year loan from a nine-bank local consortium, led by Arab Bank. The other banks involved were Jordan Kuwait Bank, Capital Bank, Société Générale de Banque - Jordanie, Investbank, Social Security Investment Fund, Bank of Jordan, Arab Jordan Investment Bank and Bank al Etihad.