Skip to main content

Successful conclusion of PPPs for wastewater treatment in Jordan


According to the US foreign aid agency Millennium Challenge Corporation (MCC), blended finance—or “the practice of mobilizing private capital for public good”—will be the infrastructure and development driver of the future, since both sources of capital are needed to fulfill (sustainable) development needs. Such a blended finance approach was taken in the public–private partnership (PPP) for the expansion of the wastewater treatment plant in Jordan in 2013. The expansion was much-needed: the original plant was reaching full capacity, and there was a risk the 2.3 million inhabitants of Amman and the surrounding areas relying on the plant for irrigation purposes would not have sufficient access to water. Due to rapid population growth in the areas of Amman and Zarqa, the government of Jordan decided to seek solutions for the financing of the plant. The MCC provided transaction advisory services and a grant of USD 93 million to help attract private investment for the expansion of the plant. The Jordanian government added another USD 20 million. This helped raise USD 110 million from the private sector, which allowed the project to take off in 2015. A PPP in the form of a Build-Operate-Transfer modality was successfully concluded.

More details on the case study here and here

Link to the original article