26182 - Queen Alia

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Environmental & Social Review Summary

Project Number

26182

Company Name

AIRPORT INTERNATIONAL GROUP

Date ESRS Disclosed

Aug 23, 2007

Country

Jordan

Region

Middle East

Last Updated Date

Feb 12, 2026

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Oct 4, 2007
Signed : Nov 14, 2007
Invested : Dec 5, 2007

Sector

Other Support Activities for Transportation (Grain Terminals, Cargo Terminals, Airport Operations)

Industry

Infrastructure

Department

Regional Industry - INF ME & Africa

Project Description

The project is to finance a 25-year concession for the expansion, rehabilitation and operation of the Queen Alia International Airport (QAIA or the Airport). With a cost estimated at approximately $680 million, the concession project was awarded to the AIG consortium by the Government of Jordan in May 2007. QAIA is the main airport in the Hashemite Kingdom of Jordan, was originally opened in 1983, and is located 36 km away from downtown Amman.

Overview of IFC's Scope of Review

IFC staff reviewed several documents including:

- Information Memorandum, Rehabilitation, Expansion and Operation of the Queen Alia International Airport, prepared by Ernst & Young, May 2007;
- Queen Alia International Airport Rehabilitation, Expansion and Operation (REO) Agreement, executed between Government of Jordan and AIG, 19 May 2007;
- EPC Contract: Heads of Terms, Aeroports de Paris Consortium, 17 April 2007;
- Technical Services Agreement: Heads of Terms, Aeroports de Paris Consortium, 17 April 2007;
- Environmental Due Diligence Inspection and Audit of the Jordan Aircraft Maintenance Company (JorAMCo), and Jordan Airmotive Company Limited (JALCo), prepared by EcoConsult for the Executive Privatization Commission, 15 April 2004;
- Queen Alia International Airport Technical Review, prepared by Jacobs Consultancy for IFC, July 2007.

IFC staff conducted site visits to the Queen Alia International Airport facilities, property and surrounding area on July 2-4, 2007. Face-to-face meetings with AIG construction, technical and operational management staff were held during the site visits. In addition, meetings were held with:

- EcoConsult, AIG’s environmental advisor and consultant, to discuss the EIA process;
- officials from the Jordanian Ministries of Environment and Transport; and
- the Jordanian Civil Aviation Authority management staff.

E & S Project Categorization and Applicable Standard

While all Performance Standards (PS) are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards:

- PS1: Social and Environmental Assessment and Management Systems
- PS2: Labor and Working Conditions; and
- PS3: Pollution Prevention and Abatement.

The Airport is located in a relatively remote area – increased noise levels are not expected to have any impact on the sparse residential areas in the vicinity. Because the project is limited to the construction of a new terminal and related infrastructure at an existing, operating airport, there is no need for additional land acquisition and access. Nor are there any threats to biodiversity, including habitat destruction, owing to the airport’s desert surroundings. There are no indigenous peoples affected by the airport development. During construction, should any fossils, coins, articles of cultural value or antiquity or other similar remains be found, AIG is required under the REO Agreement to immediately inform the relevant Government Authority and effect such investigations deemed necessary by the Authority.

This is a Category B project because a limited number of specific environmental and social impacts may result from upgrading existing airport facilities and developing a new terminal. The REO Agreement requires AIG to adher to applicable Jordanian Environmental and Labor laws and standards, as well as to several specific environmental design and operating criteria and some specific, recognized international standards. AIG has presented plans to address the impacts and other requirements, and will, upon implementation of specific agreed measures, comply with the IFC Performance Standards on Social and Environmental Sustainability.

Environmental and Social Mitigation Measures

- Social and Environmental Assessment and Management Systems

Consistent with the Jordanian Environmental Protection Law of 2003 (and as revised in 2006) and the related Environmental Impact Assessment Regulations of 2005, AIG has initiated the process of conducting a social and environmental assessment of the Airport rehabilitation and new terminal expansion. Relying on a qualified, external environmental consultant (EcoConsult), a comprehensive Environmental Impact Assessment (EIA) is being conducted, and will be completed by September 2007. The EIA will also take into account the issues identified in IFC’s Performance Standards 2 through 8, and will specifically include a description of the existing Baseline Environment Conditions and an Environmental Management Plan, which are both also required by the REO Agreement. One of the key objectives of establishing the baseline environmental conditions is to identify potential liabilities that might be associated with any remedial measures needed for any pre-existing environmental contamination on the airport property. Historical airport fueling activities may have contributed to such contamination. The Environmental Management Plan (EMP) will identify the measures necessary to mitigate potential adverse impacts during construction and operation.

AIG is committed to protecting the environment and the health and safety of its employees, contractors, customers, and the public by complying with all applicable legal requirements, including IFC’s Performance Standards, and conducting business in a safe and environmentally sustainable manner. The company will develop and maintain a management system designed to assure continued environmental and health and safety compliance and support continuous performance improvement. Written procedures and work instructions will be created consistent with the EMP, as well as the International Civil Aviation Organisation (ICAO) safety and security regulations. The REO Agreement also calls for AIG’s management systems to become certified to ISO 9001 and 14001, the international quality and environmental management system standards, respectively, within two years.

The activities of airport contractors and suppliers (i.e., EPC contractor, aircraft fueling company, aircraft maintenance companies, etc.) will also be addressed by the EMP and EHS management system. Shared EHS targets will be aligned and appropriately reflected in contract conditions for these parties.

Organizationally, EHS performance will be overseen by staff assigned to the Quality Department and to the Communication and Environment Departments, both reporting directly to the CEO. Operation Department staff will be trained regularly in their day-to-day EHS responsibilities under AIG’s operational policies and procedures.

AIG will create a structure to monitor the environmental performance of the entire area covered by the airport. This structure will be supported by high technology systems and equipment to monitor environmental performance in such areas as noise, air pollution, water use, waste management, energy use and greenery. Real time monitoring data will permit AIG to take immediate action in the event of non-compliances or exceedances of established targets. Corrective and then preventive actions will be then developed and implemented. AIG will regularly audit the EHS management system (at least annually). In addition, more frequent internal inspections will be performed (every quarter) to ensure compliance with policies and procedures. In addition, a reporting activity will ensure that monthly results are collected and analyzed by a steering committee. The steering committee will report twice a year to the top management at the occasion of the management review and after the audits. The steering committee will be comprised of staff from all parts of the AIG organization.

- Labor and Working Conditions

Based on the ratified ILO Conventions that guide this Performance Standard, Jordanian Labor Law provides an adequate framework for protection of the basic rights of workers. Workers have the right to establish and join unions, which exercise their rights to bargain collectively. Labor disputes are usually resolved through mediation or arbitration. Labor law prohibits employers from dismissing a worker during a labor dispute. Jordanian law prohibits workers from working more than the customary 48 hours a week. Employees are entitled to one day off each week, and workers may not work more than 16 hours in any continuous period or more than 60 hours of overtime per month.

AIG will employ staff according to these national protections, as well as internationally-recognized human rights principles. The REO Agreement requires AIG to employ all 373 of the current Airport workers for a period of at least two years. Any staff made redundant thereafter will be granted compensation specified in the REO and consistent with Jordanian Labor Law. The company will develop a Retrenchment Plan to mitigate the adverse impacts for redundant employees, including such aspects as job training programs and outplacement support. AIG will also develop an appropriate human resources policy providing information on employee rights under Jordanian labor law, and that will be accessible to all employees. AIG will incorporate a procedure for receiving employee complaints.

The company will develop a robust employee health and safety program consistent with the EHS management system described above. Risk analysis will be used to develop operating procedures that minimize dangers. Employees working on airfields will be provided with personal protective equipment (PPE), and the use of this equipment will be documented in the appropriate written procedure. They also will be properly trained in the relevant hazards, safety procedures and emergency response. Pre-employment and subsequent periodic medical checks will be performed for all staff. In accordance with industry standards, fire prevention and fighting equipment will be sized and located so as to be readily available to ensure maximum protection against fire.

- Pollution Prevention and Abatement

Pollution prevention and abatement issues of concern at the Airport include: pre-existing environmental contamination, construction impacts, fuel/hazardous materials handling and storage (including emergency response), water supply, stormwater drainage and wastewater discharges, and waste management.

Pre-Existing Subsurface Contamination:

Because of the volumes of jet fuel handled over the 24 years the Airport has been operating, there is a potential for contamination of subsurface soil due to spills in areas where planes were fueled, as well as in areas beneath the central fuel storage depot. Recognizing this potential liability, the REO Agreement requires AIG to identify the extent of contamination in the Baseline Environmental Conditions description in the EIA. The EMP will recommend what, if any, mitigation measures might be needed to address this risks posed by the presence of these hydrocarbons. Depending on the nature and extent of contamination, it may be enough to allow the material remain in place and naturally degrade, or, alternatively, to excavate the contaminated soil and dispose of it accordingly. The GoJ is responsible for the costs of addressing any associated remediation.

Construction Impacts:

The potential environmental impacts from construction renovation and expansion activities include fugitive dusts, soil erosion, noise, waste management (including the removal or encapsulation of asbestos), and additional vehicle traffic movement on the airport highway. The Consortium’s EPC contractor and subcontractors are expected to control these to acceptable levels through application of standard construction environmental controls. The relevant recommendations and mitigation measures called for in the EMP will be incorporated into the construction contract documents.

Fuel/Hazardous Materials Storage and Handling:

The principal hazardous material handled at QAIA is aviation fuel. The Airport has a central fuel storage depot independently owned and operated by the Jordan Petroleum Refinery Company (JP) with tank storage and hydrant pumps. Fuel is distributed to the various aprons by a fuel hydrant system. JP’s contractural arrangement to provide fuel ends in February 2008, at which time AIG will make arrangements with a new supplier. JP’s current fuel storage and distribution activities fall short, in some respects, of good EHS risk management practice, particularly with regard to secondary containment and prevention of leaks, spills and overflows.

After assuming operational responsibility for the Airport and as part of the process of contracting with a new aviation fuel supplier, AIG will ensure the new fuel contractor provides fuel storage tanks and associated truck unloading stations with fully bunded and impermeable secondary containment systems to prevent accidental spills from being released to the environment. The company will include these as conditions of the new fuel supply contract, and will monitor compliance with these standards consistent with the EHS management system it will implement. AIG will also ensure that other Airport vendors and suppliers (i.e., aircraft maintenance companies) appropriately store and handle hazardous materials and chemicals in segregated holding areas.

AIG, in coordination with the aviation fuel supplier, will develop emergency plans and procedures that include provisions for properly handling major accidents, fuel spills and dangerous goods, and for explosions and fires. Staff will be trained in the procedures for cleaning up fuel spills, and to remove any foreign objects or debris from the aprons and runways. Appropriate emergency equipment will be provided, including ICAO-conforming fire fighting vehicles, ambulances and associated emergency equipment, and personnel will be regularly trained in how to properly respond. Critical components of the emergency plan will be tested on a regular basis. Full scale emergency training exercises will be held every two years.

Water Supply:

There are two sources of water supply for the airport: a system of four off-site groundwater wells with ancillary disinfection processes and transmission and storage reservoirs; and connection to the national water authority’s water distribution system. Primary demand is served by the well system; flows in excess of well production capacity (3000 cu. m. per day) are supplemented by national system connection. Water quality meets Jordanian and World Health Organization drinking water standards. AIG will ensure that sufficient water flows are available to satisfy the demand from growing passenger use, and will design and construct the new terminal with water efficient technologies – such as low-flush toilets and low-flow spray taps – to minimize water consumption.

Effluent Discharges and Stormwater Drainage:

Sewage generated at the terminal and service areas, and from aircraft, is collected in a separate wastewater collection system and treated in a secondary-level, biological wastewater treatment plant located on the airport property. Treated effluent is land-applied to the Airport’s Greenfield on the perimeter of the property, and meets Jordanian requirements and standards for reuse. With appropriate maintenance and operating improvements, the additional hydraulic and pollution loads generated by the Terminal expansion can be adequately managed and treated in the existing facility. In addition, AIG will ensure that industrial wastewater from the JorAMCo and JALCo maintenance operations will be appropriately pre-treated (and certain offending contaminants, such as oil and hazardous chemicals, removed) prior to discharge to the collection system so as to ensure the Airport wastewater treatment plant operates properly and meets all discharge standards.

QAIA’s surface water drainage system will be sufficient to manage surface water runoff from runways, apron, car parks, and maintenance and ground handling areas.

Waste Management:

Solid wastes generated by airport operations is collected by licensed contractors and disposed off-site at government-approved landfill sites. The relatively small amounts of hazardous wastes generated – primarily waste oils from maintenance operations – will be stored in drums and periodically collected and recycled. AIG will ensure that JorAMCo and JALCo will implement any remaining remediation actions involving hazardous and non-hazardous waste management as recommended in the 2004 Environmental Audits conducted by EcoConsult for the Royal Jordanian Executive Privatization Commission.

Stakeholder Engagement

The EIA process for the Airport rehabilitation and new terminal expansion includes adequate disclosure of information to the public, as well as a process of consultation with affected communities. Beginning with the EIA scoping phase, the Ministry of Environment invites public and private parties that may be potentially affected by the project to participate in the scoping session. At this meeting the project is described, and the likely environmental and social issues are identified and discussed. Prior to the actual meeting, AIG will distribute to all affected stakeholders a written elucidation of the overall approach and methodology to be used to conduct the EIA. A summary of the deliberations of the scoping session will be prepared, including a list of all attendees, and the results of the session will be used to guide the preparation of the EIA. Upon request, the Ministry of Environment shall make available to concerned entities and affected parties the information and data provided in the EIA during all phases of its preparation.

After completion of this EIA-related community engagement, ongoing dialog and communication with affected communities will be accomplished through the external communication element of AIG’s EHS management system. There will be a procedure developed that addresses communication with external parties, including the handling of complaints.

For more information, contact:

Panos Panayides
J&P
PO Box 21178
CY-1503 Nicosia
Cyprus

Telephone: +357 22 86 86 35
E-mail: bdev@jandp.com.cy

**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).

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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