NEW YORK -- GAMA Energy AS, a joint venture between Turkey-based GAMA Holding AS and General Electric Co. unit GE Energy Financial Services, said Wednesday it reached a funding milestone for the construction of a water-pipeline project in Jordan.
The $1 billion Disi Water Conveyance project is expected to address water-scarcity issues by supplying Amman, the country's capital, and surrounding areas with more than 100 million cubic meters of water per year, the company said. Jordan's water resources per capita are among the world's lowest and water is delivered only once a week to Amman's residents, according to a statement by GAMA Energy. The 325-kilometer (200 miles) pipeline will pump water from the Disi aquifer in Mudawarra to Amman. About 2.5 million people live in Amman, according to the U.S. Department of State's Web site.
GAMA Energy said the project is the largest privately financed water-supply project in Jordan, with GAMA Energy investing $190 million; the Ministry of Water and Irrigation of Jordan giving a $300 million grant; and the Overseas Private Investment Corporation of the United States, the European Investment Bank and Proparco of France collectively providing $455 million in debt financing. The Jordanian ministry signed loan agreements with the EIB and the French Development Agency on May 17.
In 2007, the government of Jordan awarded GAMA a concession to build and operate the water pipeline, the statement said. GAMA Energy will own the project for a 25-year concession period, after which it will transfer to the Government of Jordan, it added. Today's funding news is the first in a series, the company said, adding that construction will likely begin this month. Construction of the pipeline, by an affiliate of GAMA Holding, is expected to take four years and use an estimated 250,000 tons of steel and involve the digging of 55 wells. Disi Amman Operation Maintenance LLC, fully owned by Suez Environment, will provide long-term operations and maintenance services.
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