11106 - Al Tajamouat Industrial City

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Environmental Review Summary

Project Number

11106

Company Name

SPECIALIZED INVESTMENT COMPOUNDS CO. PLC.

Date ERS Disclosed

Aug 29, 2001

Country

Jordan

Region

Middle East

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Oct 3, 2001
Signed : Oct 22, 2001
Invested : Dec 3, 2001

Sector

Construction and Real Estate

Industry

other

Department

Regional Industry MAS MCT

Project Description

The proposed project is an expansion of an existing integrated industrial estate, Al Tajamouat Industrial City (ATIC), located 20 km from downtown Amman, the capital of Jordan. ATIC is located on 300,000 m2 of land in accordance with an approved master plan and hosts over 30 tenants, both foreign and local. The tenants are engaged in light engineering, manufacturing and production of garments, plastic goods, beverages, furniture, and fixtures, and distribution activities. The expansion project commenced in early 2001 to keep up with the high demand for qualifying industrial zone (QIZ) space in Jordan, and entails purchase of an additional of 12 ha of land; construction of supplementary infrastructure (electrical distribution and water treatment facilities, transportation, communication and cargo-handling facilities); completion of seven and expansion of three factory buildings that will add 60,255 m2 of industrial space to the existing 88,000 m2; and construction of a canteen and dormitories for up to 2,250 workers.

ATIC is located 15 km from West Amman''s residential area, which is also a commercial and administrative center; 7 km from East Amman; and 25 km from the Queen Alia International Airport. ATIC has easy access to the well developed infrastructure, including roads, domestic water network, sewage network, telecommunications, and power supply.

Environmental and Social

The sponsor has presented plans to address these impacts to ensure that the proposed project will, upon implementation of the specific measures agreed, comply with applicable host country laws and regulations and World Bank/IFC requirements. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow.

Land required for the expansion has already been acquired by direct purchase from private owners. No physical and economical displacement resulted from land acquisition. ATIC indicates that there is little potential for archaeological sites, and no protected or sensitive areas are on-site or nearby.

Electricity will be supplied by the local utility and there will be no central facility for process steam. Thus, air emissions will only result from processes at individual tenant facilities and are subject to government air permitting requirements.

Solid waste generated at tenant facilities is collected by private haulers and disposed of at the municipal landfill. ATIC is investigating the feasibility of implementing a grinding facility that would process waste fabric into furniture stuffing material or other uses.

Artesian well water is supplied by the water authority of Jordan through a 16-inch diameter pipeline to ATIC. Tenants have individual meters.

Sanitary sewage is collected by the sewerage network of the industrial estate and discharged to septic tanks. Tenants that operate water consuming processes, such as a garment washing facility, are required to install separate treatment plants.

The project would facilitate creation of up to additional 12,000 skilled and semi-skilled jobs in Jordan. ATIC has already generated 5,000 jobs. The Government of Jordan imposes strict limitation on import of foreign workers but, recognizing that Jordan has relatively few skilled workers at present, has agreed to accept a maximum of 33% foreign workers for a limited period. Some of the foreign workers will provide training to local staff. Industries can be expected to expand the Jordanian worker proportion because foreign workers are estimated to cost about four times as much as local workers. In addition, the project will support training programs, both on and off the job, to assist local people to take advantage of employment opportunities, and it will implement a program to phase out the majority of foreign workers.

The municipality and government environmental agency restrict the types of industries that are allowed to operate at ATIC. ATIC''s engineering department screens potential tenants as to the type of manufacturing that they wish to perform and the waste projects that will result. Tenants are restricted to light manufacturing and processes that have readily controllable impacts. ATIC is developing a formal environmental policy to enforce environmental and health and safety standards throughout the industrial estate; completion of a satisfactory policy will be a condition of IFC loan disbursement.

Conclusion & Monitoring

This Environmental Review Summary (ERS) is prepared and distributed in advance of the IFC Board of Directors' consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Any documentation that is attached to this ERS has been prepared by the project sponsor or in conjunction with the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content. The following ERS is disclosed in accordance with IFC's Disclosure of Information Policy that went into effect September 1998.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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