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Sun 12 Jul 2009 06:56 AM

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$1bn project to ease Jordan sewer water shortage

Disi Water Conveyance Project includes 325km pipeline to ferry water to Amman.

$1bn project to ease Jordan sewer water shortage
WATER PLAN: The Disi Water Conveyance Project will help ease the sewer water shortage in Amman, Jordan. (Getty Images)

A new $1 billion project is being set up in Jordan to help alleviate a sewer water shortage in the country’s capital city, Amman.

The Disi Water Conveyance Project includes the construction of a 325km pipeline that will drive water from the Disi aquifer in Mudawarra to the capital.

The project will be constructed thanks to funds that came from Gama Energy, a joint venture between Gama Holding and GE Energy Financial Services, Construction Week Online reported.

The investment will create jobs and promote private sector participation in Jordan’s development.

Commenting on the Disi project, Prime Minister Nader Dahabi of Jordan said: “This project represents a milestone towards ensuring water security and addressing the country’s water shortage.”

Jordan’s water resources per capita are among the world’s lowest. Water is delivered only once a week to Amman’s residents. The Disi Water Conveyance Project is expected to supply Amman and surrounding areas with more than 100 million cubic metres of water a year.

 “We take pride in the vote of confidence we won from the financial community by closing a $1 billion project amidst the worldwide economic downturn,” added Gama Energy managing director and board member Arif Ozozan.

The first in a series of funding was made today, with construction expected to begin this month.

The project’s construction is expected to take four years. It will use an estimated 250,000 tonnes of steel and involve the digging of 55 wells.

The Disi project is the largest privately financed water supply project in Jordan and the surrounding countries.

Gama Energy will invest approximately $190 million, the Ministry of Water and Irrigation of Jordan will provide a $300 million grant, while the Overseas Private Investment Corporation of the US, the European Investment Bank and Proparco of France will collectively provide $455 million in debt financing.

In 2007, the Government of Jordan awarded GAMA a concession to build and operate the water pipeline. The firm will own the project for a 25-year concession period, after which it transfers to the Government of Jordan.

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